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San Francisco Public Library 

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SAH FRANQSCO PUBUC UBRARY 

REFERENCE BOOK 

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3 1223 06155 3971 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEFT. 

FEB 1 

GAN r-Krtlvo... 



MINUTES 



JANUARY 2, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsidtnt 

DR. Z. L. GOOSBY 

Vict Prtsidtnt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

January 2, 1990 



CALENDAR 
SECTION 

A. 
B. 
C. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
December 5, 1989 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Resolution Establishing a 77= 
Off-Airport Rental Car Gross 
Recepits Fee, with an Exemption 
on the First $ 1 —Mi 1 1 i on in 
Annual Revenue Generated from 
the Airport. Court Reporter's 
transcript available. 



RESOLUTION 
NUMBER 



90-0001 



PAGE 
2 



90-0002 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

$15,000 Supplemental Appropriation 
Request for the FAA Annual MBE/WBE 
Conference 90-0003 

USAir, Inc. - Modification No. 4: 

Resolution Modifying Lease and 

Use Agreement 90-0004 

Resolution Ratifying Personnel 

Actions 90-0005 



NEN BUSINESS: 
Associated Limousine Lease 

CORRESPONDENCE: 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 






Digitized by the Internet Archive 
in 2013 



http://archive.org/details/4minutes1990sanf 



Minutes 

of the 

Airports Commission Meeting 

January 2, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of December 5, 1989 were adopted by 
order of the Commission President. 

No. 90-0001 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following item was adopted unanimously. A court reporter's transcript 
for Item No. 1 is available. 

1 . Resolution Establishing a 77. Off-Airport Rental Car Gross Receipts 
Fee, with an Exemption on the First S 1 -M i 1 1 i on in Annual Revenue 
Generated from the Airport 

No. 90-0002 



Minutes, January 2, 1990, Page 2 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

2. $15,000 Supplemental Appropriation Request for the FAA Annual MBE/MBE 
Conference 

No. 90-0003 To cover the costs relating to SFIA 

serving as the host for the annual 
MBE/WBE Conference in June, 1990. 



3. USAir, Inc. - Modification No. 4 : 

Resolution Modifying Lease and Use Agreement 

No. 90-0004 Resolution modifying USAir, Inc., 

Lease and Use Agreement No. 82-0120 
reconciling as-built space in the 
South Terminal Building Boarding Area 

'A' . 



4. Resolution Ratifying Personnel Actions 

No. 90-0005 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



NEW BUSINESS: 

Commissioner Stephens asked for a status report on the limousine lease. 
He thought that Associated was past the cure period. 

Mr. Garibaldi explained that when the Commission decided to terminate the 
lease because of their default, we then had to give them another three (3) 
day notice. Associated then cured within the three (3) day period. They 
gave us a bond and paid up their arrearage. 

Commissioner Duval 1 asked if we were required to do that. 

Mr. Garibaldi responded that we are required to do that under the basic 
landlord/tenant law of the State. They have a lease and we must give them 
that three (3) day period. 

Commissioner Stephens asked if they were able to satisfy that by providing 
a letter of credit that had such a short term expiration date on it. 

Mr. Garibaldi responded that they replaced it with one that goes to the 
end of their lease. He said that it has all been taken care of. 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 

Minutes, January 2, 1990, Page 3 



J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:32 AM to go into closed session. 



J{(jJ'lUtjLuC 



Jparil Caramatti 
Zommission Secretary 



Minutes, January 2, 1990, Page 4 



<£ 



>/<iO 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEFT. 

MAR 



MINUTES 



FEBRUARY 20, 19 90 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L. GOOSBY 

Vict President 
DONALD R. STEPHENS 
SHARON B. DUVALL 
PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

February 20, 1990 



CALENDAR 
SECTION 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER 



ROLL CALL: 



RESOLUTION 
NUMBER 



PAGE 
3 

3 



1. 



DIRECTOR'S REPORT: 

Report on Valet Parking 
Marketing Plan 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Approval of the Fiscal Year 

1990/91 Budget 90- 

Award of Agreement: Agreement 
for Operator-Assisted Long Distance 
Service ffrom Pacific Bell Public 
Pay Telephones 90- 

Award of Professional Services 
Contract: Environmental Science 
Associates, Inc. 90- 



0025 



0026 



0027 



Authorization to Conduct Pre-Bid 

Conference: Limousine Service 

Leases 90-0028 



Authorization to Conduct Pre-Bid 
Conference: Lease of Crab and 
Seafood Kiosks 90- 



Reimbursement to Oantas 



90 



Reimbursement - Canadian Airlines 
International , Ltd. 90- 



0029 
0030 

0031 



Sale of Former Delta Airlines' 

Improvements in the North 

Terminal to American Airlines 90-0032 



4-5 



5-7 



8-9 



10. 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Retirement Resolution: 
Ben Gonzales 



90-0033 



11. Resolution Approving Execution 
of Hold Harmless Agreement with 
City of San Mateo for Airport 

Police Motorcycle Training 90-0034 9 

12. Approval of Claims Settlement 90-0035 9 

13. Declaration of Emergency - Contract 
No. 2283: Electrical Cable Failure 

(Cable 12NANB-1) 90-0036 10 



NEW BUSINESS: 



H. CORRESPONDENCE; 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 



Minutes, February 20, 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

February 20, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patri ck A. Murphy 



C. DIRECTOR'S REPORT: 

1 . Report on Valet Parking Marketing Plan 

Mr. Lou Turpen, Airport Director, explained Valet Parking patronage 
continues to decline. In an effort to reverse that trend staff is 
recommending a three-point program. This plan includes distributing 
the Wall Street Journal to all Valet patrons, offering $5.00 discount 
good at food and beverage facilities on Airport, and a seventh day of 
free parking along the lines of a frequent parker program. He 
believed that these actions will help to reverse the trend in 
decl ining patronage. 

Mr. Turpen said that Valet continues to be a service and is an 
important part of what we do. We do not want to see it go away. 
Staff will return to the Commission with a more formal proposal at a 
later date. 

Commissioner Goosby reminded Mr. Turpen that Valet Parking will not 
be subsidized. 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein said that he asked for information on how the small 

concessions at the Airport were doing but the information he received was 

insufficient. He said that he would bring it up at the next meeting when 
all Commissioners would be present. 



Minutes. February 20, 1990, Page 3 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

The following items were adopted unanimously. 

2. Approval of the Fiscal Year 1990/91 Budget 

No. 90-0025 Resolution approving the proposed 

Fiscal Year 1990/91 budget in the 
amount of $184,614,729.00. 

Mr. Turpen reminded the Commission that the only objection was with 
regard to the $2 . 8-mi 1 1 ion security checkpoint program in the 
International Terminal. The airlines object to the program because 
the checkpoints are an airline responsibility under existing FAA 
guidelines. The FAA has indicated to us that there may be an 
exemption granted to San Francisco and SFO may be used as a test for 
an integrated security program. 

Mr. Turpen said that the $2 . 8-mi 1 1 ion has been left in the budget. 
He recommended approval of the budget so that it might proceed 
through the remainder of the approval process. 



Award of Agreement: 

Agreement for Operator-Assisted Long Distance Service from Pacific 

Bel 1 Pub 1 ic Pay Telephone 

No. 90-0026 Resolution awarding the agreement for 

Operator-Assisted Long Distance 
Service from Pacific Bell Public Pay 
Telephones to AT&T. 

Mr. Turpen said that this is consistent with the Commission's earlier 
instructions to staff to conduct an RFP for public telephone 
service. Staff is recommending that AT&T be awarded the contract for 
this service. AT&T is impressive, particularly in the international 
marketplace. He said that the higher proposed concession fee is also 
a determining factor. Staff recommends that a cents per passenger 
commission fee be used as the method of billing. The Airport will 
receive about $1 . 3— mi 1 1 ion in revenues for FY 1990 from this activity. 

Commissioner Goosby asked if the suit was still on-going. 

Mr. Don Garibaldi, Airports General Counsel, responded that the suit 
has been concluded in favor of the Airport. He also said that the 
time has run for filing notice of an appeal. 



Award of Professional Services Contract 



Environmental Science Associates. Inc. 



No. 90-0027 Award of Professional Services 

Contract to Environmental Science 
Associates, Inc. for technical 
services in the preparation of an 
Environmental Impact Repct for the 
Airport Master Plan. Consultant 
willprovide specialized expertise as 
required by City's Office of 
Environmental Review to supplement 
work already done. 



Minutes, February 20, 1990, Page 4 



Mr. Turpen explained that this is in conjunction with the master 
plan. He said that there is a need for a particular expertise in the 
environmental process, especially with respect to the noise concerns 
that have surfaced in the preliminary phases of this contract. Some 
preliminary work was done by James Jefferson and he has concluded his 
portion of the work. This is the next level of the process. Staff 
recommends award of this contract to Environmental Sciences 
Associates to proceed with the development of the environmental and 
master plans. 

Mr. Turpen said that this firm was selected by a broad-based panel 
which included City Planning, the Airport, James Jefferson and the 
Human Rights Commission. 

Commissioner Goosby asked if they would look at the noise question 
and at the same time prepare a feasibility study. 

Mr. Turpen told Commissioner Goosby that he was correct. He said 
that the key question is whether or not there is a noise impact that 
will result from the current master plan which the Commission has 
approved in draft form. He said that there is a second far more 
extensive study which involves changing the runways. If that occurs 
there will be a whole different set of parameters to be considered. 
Their efforts will focus on the existing system and the question of 
whether or not the projects being proposed will offer the possibility 
of increased noise. 

Commissioner Goosby asked if these EI Rs will have to be submitted to 
any other agencies . 

Mr. Garibaldi responded that the EIRs must go to City Planning. 

Commissioner Goosby said that this is expanding into a larger study 
than first anticipated. He asked if we were clear in what is 
required of City agencies. 

Mr. Turpen responded that the Airport retained an environmental 
consultant at the very beginning of the process. That was before we 
knew exactly what would occur. He said that now that we know, the 
scope of the project is significant when we're talking about a new 
International Terminal. Because the scope has increased, so has the 
scope of the environmental review. Therefore, this additional effort 
is appropriate. 

Commissioner Goosby asked if this was an estimate of their maximum. 

Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
responded that this is not a maximum. This is a time an-d materials 
contract. 



5. Authorization to Conduct Pre-Bid Conference: 
Limousine Service Leases 

No. 90-0028 Recommendation to adopt resolution 

authorizing staff to conduct pre-bid 
conference for two limousine service 
leases . 

Mr. Turpen said that the existing limousine lease expires in early 
1991 and staff is requesting permission to conduct a pre-bid 
conference for this service. 



Minutes, February 20, 1990, Page 5 



Commissioner Goosby said that one item for discussion at the pre-bid 
should be whether or not a limousine service is necessary. He said 
that we were without such a service for many years. 

Mr. Turpen said that there were some informal agreements back through 
1983 or possibly earl ier . 

Commissioner Goosby said that the agreements must have been very 
informal because he did not recall there being a specific area for 
just one firm. 

Mr. Turpen said that other firms come to the Airport on a regular 
basis. There is a whole procedure involved. He said that when the 
Airport got into this we found out that there were something like 46 
or 56 firms that had pre-arrangements at the Airport so a system was 
set up. He said that staff would be happy to put it on the table. 

Commissioner Goosby said that this company complains all the time and 
with all of the problems that we've had with them he wondered if it 
was worth the hassle. 

Commissioner Stephens asked how it worked. He asked if any other 
limousine companies will bid against Associated. 

Mr. Turpen responded that it is very possible that other companies 
will bid as well. He said that one of the suggestions is that we go 
back to the system used in the late 1970s where traffic was split. 
He said that we had a firm that worked North to San Francisco and a 
firm that worked South down the Peninsula. Staff is looking at that 
same arrangement now. 

Commissioner Stephens said that this is really just a fancy taxicab 
service . 

Mr. Turpen agreed. 

Commissioner Stephens asked if this was pre-arranged. 

Mr. Turpen responded that in many cases it is. He said that there 
are two basic limousine services at the Airport. Those persons under 
contract with the Airports Commission and a second group which we can 
lump into independent operators who work on an on-demand basis. He 
explained that the limousine is parked in the garage, the driver 
meets the passenger and then returns to the garage to get the car and 
pick up the passenger at the curb. 

Commissioner Stephens asked what the advantage is for Associated. 

Mr. Turpen responded that they have spots on the roadway and in the 
courtyard as well as desks on the lower level baggage claim area so 
there is potential for walk-up patronage. He did not know what the 
percentage was for walk-up business. 

Commissioner Stephens asked how LAX handled their service. 

Mr. Turpen responded that he did not know but would find out. He 
said that the whole problem with this issue has been the $400,000 
plus a year that was bid. There is a lot of money on the table and 
it takes a lot of business to make up that kind of money. He felt 
that that has been at the route of the problem throughout the entire 
term of the lease. He hoped that by splitting it we will receive 
responsible bids that will let the company function profitably. 



Minutes, February 20, 1990, Page 6 



Commissioner Bernstein asked if we had been involved in a lawsuit 
with Associated at one time. 

Mr. Garibaldi responded that they have a lawsuit pending. 

Commissioner Bernstein asked if it would be possible to settle the 
whole thing. 

Mr. Garibaldi responded that the lawsuit must be dealt with 
separately from bidding the lease. 



6. Authorization to Conduct Pre-Bid Conference 
Lease of Crab and Seafood Kiosks 



No. 90-0029 



Resolution authorizing Director to 
hold a pre-bid conference for the 
lease of Crab and Seafood Kiosks in 
the North Termi nal . 



Reimbursement to Qantas 

No. 90-0030 Resolution approving $596,886.00 

current reimbursement and $462,623 
possible future reimbursement to 
Qantas for relocating flight club and 
improvements to the fourth floor of 
the International Terminal at the 
Airport's request. 

Mr. Turpen said that the Airport has a need for an in-transit lounge. 
SF0 is getting flights coming from one foreign location and departing 
for another foreign location with some ground time involved. We need 
a sterile area to place those transiting passengers. These 
passengers are really not in the country. He said that when the 
International Terminal was built SFO was really a terminus Airport 
and had none of this activity. The International Terminal does not 
have an appropriation location for this activity. Qantas has agreed 
to move its VIP lounge, located in the boarding area, to the main 
portion of the International Terminal so that the Airport can turn 
that space into an in-transit lounge. 

Mr. Turpen explained that UTA comes from Tahiti and goes on to Paris. 
Very often passengers on that flight are flying through to Paris and 
they are on the ground for a couple of hours. These passengers are 
not processed through customs and are currently positioned in the 
lower hallway which is sealed off. He said that it is an ineffective 
way to handle passengers and not very hospitable. This will provide 
us with the type of facility that will not only deal these passengers 
but give us the latitude to do other things as well. 

Commissioner Goosby asked what other uses Mr. Turpen was considering. 

Mr. Turpen said that the in-transit lounge could probably be used to 
handle VIPs. He said that the space is approximately 4,000 square 
feet and makes a very nice lounge. 

Commissioner Bernstein said that this will cost the Airport 
$ 1 -mi 1 1 ion . 



Minutes, February 20, 1990, Page 7 



Mr. Peter Nardoza, Assistant Deputy Director for Business and 
Finance, responded that the $462,000 figure is money we would pay to 
Qantas if we asked them to move again. The move from the boarding 
area to the 4th floor will cost approximately $500,000 in 
reconstruction costs. If at some point in the future the Airport 
asks Qantas to move again we will pay them up to $462,000. 

Mr. Turpen explained that the $462,000 is a pre-determined rental 
credit as a buy-out for their improvements. He said that if the 
Airport does not ask Qantas to move a second time they will not 
receive that money. 

Commissioner Goosby hoped staff would be creative in using the room. 
He asked how often we have in-transit passengers. 

Mr. Turpen responded that it is probably four or five times a week on 
UTA and Air France, with as much as 60 to 100 passengers per trip. 
He said that that number will increase with some of the newer 
aircraft. 

Mr. Turpen said that Jason Yuen and John Costas did a good job of 
acutally trying to come up with an initial plan but the numbers have 
grown. He said that originally we were talking about 10 to 15 people 
so it wasn't worth the expenditure. Those numbers have grown and 
they will continue to grow. 

Commissioner Bernstein asked what the cost will be per square foot. 

Mr. Yuen responded it will be about $100 per square foot, including 
f urni shi ngs . 

Mr. Dennis Bouey, Deputy Director for Facilities Operations and 
Maintenance, added that the space is 4,030 square feet and it also 
requires structural work to handle the new load and f ireproof i ng . In 
addition to the work that Qantas is doing in their area they have 
also agreed to build rooms for the Airport on this floor, including 
restrooms . 

Commissioner Bernstein asked about the other $400,000. 

Mr. Turpen said that before the other $400,000 is spent staff will 
return to the Commission. 

Mr. Bouey said that it is a straight line depreciation over 10 
years. 

Commissioner Stephens asked if we have any plans to ask Qantas to 

move again. 

Mr. Turpen responded that we do not. He said that everytime we try 
to figure out the cost after the fact we get into trouble. The best 
example of that situation is the downtown Airporter terminal. We are 
trying to avoid that problem by specifying up front the costs and the 
amortization schedule and establishing buy-out provisions on all of 
our property. It's a set sum that everyone agrees to as opposed to 
debating the issue for months and years. He said that he still isn't 
sure what the downtown Airporter terminal cost and that has been 
going on for nine years. 



Reimbursement - Canadian Airlines International, Ltd. 

No. 90-0031 Reimbursement of $160,000.00 to 

Canadian Airlines International for 



Minutes, February 20, 1990, Page 8 



expenditures incurred in the Airport- 
requested relocation from the 
International to the North Terminal. 

Mr. Turpen explained that Canadian Airlines does not require customs 
clearance in the U.S. as their passengers are pre-cleared at the 
point of origin. This allows us to move them into a domestic 
terminal. Canadian operates during high-impact hours and relocating 
them will free up ticket counter space needed to accommodate airlines 
desiring to come to San Francisco and new entrants into the 
international market. At the same time it will open up gate 
availability for international carriers requiring customs clearance. 
Staff has been working with Canadian and American Airlines to move 
Canadian into the North Terminal pending the development and 
inauguration of the new International facility. At that time they 
will move back into the International Terminal. 



9. Sale of Former Delta Airlines' Improvements in the North Terminal to 
Ameri can Air! i nes 

No. 90-0032 

Mr. Turpen said that when Delta Airlines moved out of the North 
Terminal to Boarding Area 'C the Airport took over the Delta 
property pending its becoming American's property. This simply 
concludes that arrangement. Delta has already been paid so the 
unamortized cost will return to the Airport. 



F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

10. Retirement Resolution: 
Ben Gonzalez 

No. 90-0033 



1 1 . Resolution Approving Execution of Hold Harmless Agreement with City 
of San Mateo for Airport Police Motorcycle Training 

No. 90-0034 



12. Approval of Claims Settlement 

No. 90-0035 Resolution approving the settlement of 

claims not exceeding $5,000.00 for the 
period July 1989 to December 1989. 

Total Claims: $22,518.54 



Minutes, February 20, 1990, Page 9 



13. Declaration of Emergency - Contract No. 2283: 
Electrical Cable Failure (Cable 12NANB-1) 

No. 90-0036 Resolution ratifying the action of the 

President of the Commission in 
declaring an emergency and directing 
the Director of Airports to effect the 
necessary repairs. 



G. NEW BUSINESS: 

There was no discussion by the Commission 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 



3. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:30 AM to go into closed session. 



Jean Caramatti 
Commission Secretary 

i 



Minutes, February 20, 1990. Page 10 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

APR 9 1390 

SAN l-K/MNlCli^CO 



MINUTES 



MARCH 20, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vice President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

o f the Minutes 

Airports Commission 

March 20, 1990 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 



ROLL CALL: 



ADOPTION OF MINUTES: 



Regular meetings of February 6 

and Fetruary 20, 1990 90-0037 



ITEMS INITIATED BY COMMISSIONERS 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS I MAINTENANCE: 

Awarding the Sale of the Series 
E Bonds 

- Establish terms and interest 
rates of Series E Bonds pursuant 
to results of competitive bid 
(9th supplemental amendments to 
master bond resolution); and, 90-0038 

- Award sale of Series E Bonds to 
lowest bidder 90-0039 

Modification to Bond Trustee 

Contract 90-0040 4 

Authorization to Conduct Pre-Bid: 

Airport Public Parking Operating 

Agreement 90-0041 4-5 

Authorization to Re-Bid Pacific 

Bazaar Lease 90-0042 5 



CONSENT CALENDAR r ROUTINE 
ADMINISTRATIVE MATTERS: 

5. Commemoration Resolution: 

Joseph 0. Pitts 90-0043 6 

6. Commemoration Resolution: 

Dr. Maurice A. Garbell 90-0044 6 



Resolution Approving Services by 

Pan American World Airways to 

Ground Services, Inc. 90-0045 6 

Award of Contract No. 2271 : 

Runway 28' s Pavement Grooving 90-0046 6 

Bid Call - Contract No. 1864: 

Road R-6 Reconstruction and 

Asphalt Concrete Overlay 90-0047 6 

Resolution Ratifying Personnel 

Actions 90-0048 6 



PUBLIC HEARING: 



11. Hearing on Airport Valet Parking 
Marketing Program 



H. NEW BUSINESS: 

I. CORRESPONDENCE: 

J. CLOSED SESSION 

K. ADJOURNMENT 



Marcl . 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

March 20, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 

Commissioners Bernstein and Goosby 
left the meeting 10:30 AM during a 
recess . 



CLOSED SESSION: 

The meeting recessed at 9:02 AM to go into closed session and reconvened 
at 1 : 1 C AM. 



ADOPTION OF MINUTES: 

The minutes of the regular meetings of February 6 and February 20, 1990 
were adopted by order of the Commission President. 

No. 90-0037 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated ty Commissioners 



Minutes. March 20, 1990, Page 3 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

Item Nc. 1 was moved to the end of the calendar. Items no. 2 through 4 
were adopted unanimously. 

2 . Modification to Bond Trustee Contract 

No. 90-0040 Resolution approving modification to 

Bond Trustee contract with Bank of 
America to include the Series E bonds. 



Authorization to Conduct Pre-Bid Conference: 
Airport Public Parking Operating Agreement 

No. 90-00 Resolution approving specifications 

for Airport Public Parking Operating 
Agreement and authorization to conduct 
pre-bid conference. 

Commissioner Stephens asked who would comprise the advisory committee 

Mr. Peter Nardoza, Assistant Deputy Director of Business and Finance, 
responded that the advisory committee would consist of a member of 
Airport Property Management, Airport Accounting, Airport Financial, 
Lancside Operations and the new Parking and Transportation Authority. 

Commissioner Stephens asked how it would work. 

Mr. Turpen responded that the Committee will review specifications 
and pre-qualify firms. Sta^f will return to the Commission with a 
list of five or six firms that will be allowed to bid. 

Commissioner Goosby asked if the successful bidder will be 
responsible for paying for Airport-required insurance. 

Mr. Turpen responded that the successful bidder will not have to pay 
insurance costs. This is like a management contract. The Airport 
will collect the money and pay the bills. The company will submit a 
request for reimbursement for time and salaries. That request will 
be audited by the Airport. 

Commissioner Goosby asked if there was a limitation on the number of 
employees the company can hire. 

Mr. Turpen said that there is a limitation. The Ai rport control s the 
number of hires and the times the lanes are open. The company 
negotiates all union contracts, but the Airport approves them. 

Commissioner Goosby asked if the company's legal fees will be built 
into the cost. 

Mr. Turpen responded that the companay will use the City Attorney. 

Mr. Don Garibaldi, Airports Gene-'al Counsel, added that the Airport 
will cover attorney costs for management-related attorney fees. 

Mr. Turpen added that Landside Operations has an employee who is 
responsible for this contract. 

Mr. Turpe n said that this is simply for the operation of the garage 
and includes tellers, maintenance people, etc. 



tes, Mai ch 20, 199:. p a?e 4 



Commissioner Goosby wondered how the operator could pay all of the 
expenses and make money. He hoped that the Airport looked closely at 
the bills that are submitted. 

Mr. Turpen said that operational and financial audits are prepared. 

Commissioner Goosby said that all of the bidders submitted low bids. 
He wondered how a company can submit a bare-bones bid and still make 
money. 

Mr. Turpen responded that from a concept standpoint what staff has 
been doing appears to have worked very well. Last year 4,800,000 
vehicles left the garage. We had a total of 15 operational 
complaints, 26 property claims and approximately 2,000 fee collection 
complaints, i.e. lost ticket refunds, insufficient funds, etc. He 
said that it has truly been a positive effort operationally for the 
Airport. We gross about $33-million and it costs us about 
$8 . 6-mi 1 1 i on to operate. We are netting about $26-million to 
$2 8-mi 1 1 i on from the garage per year. 

Mr. Turpen said that there are a series of financial and operational 
audits are performed, both announced and unannounced. He said that 
the_, have always turned out properly. 

Commissioner Duvall asked if the Airport Parking Management group 
operated other businesses. 

Mr. Turpen responded that they operate other garages and Candlestick 
Park . 

Com- ; . s s ioner Goosby said that Airport Parking Management cannot 
operate another facility if it is within 5-miles of the Airport. He 
asked how far Candlestick Park was from the Airport. 

Mr. Garibaldi added that Airport Parking Management runs a good 
operation. Their predecessor had a lot of problems. 

Mr. Garibaldi said that all of the firms came in close to that figure 



Commissioner Bernstein asked if the Airport had a toy store. 

Mr. Nardoza responded that we do not have a toy store although many 
shops do offer toys . 

Commissioner Bernstein suggested staff look into the possibility of 
offering a toy store. He also suggested that staff look into 
establishing an art shop in conjunction with the museums. 

Commissioner Duvall liked both ideas and suggested staff look at 
other airports to see what they have done. 



Authorization to Re-bid Pacific Bazaar Lease 

Mr. Turpen said that ABC Cigar tendered a bid of $418,000 for this 
concession. ABC Cigar has indicated that they cannot proceed Staff 
asks the Commission's concurrence in authorizing a re-bid and 
prohibiting ABC Cigar from bidding on the subsequent opportunity. 



Mil tes, March 20, 1990, Page 5 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

5. Commemoration Resolution for Joseph 0. Pitts 



No. 90-0043 



Recommend adoption of proposed 
Commendation Resolution for Joseph 0. 
Pitts, Assistant Traffic Control 
Manager at San Francisco International 
Airport. 



6. Commemoration Resolution 



No. 90-0044 



Commemoration Resolution for Dr 
Maurice A. Garbel 1 



Resolution Approving Sublease by Pan American Nor Id Airways to Ground 
Services, Inc. 



No. 90-0045 



Resolution approving the sublease of 
office space in the administration 
building located on Plot IC, by Pan 
American to Ground Services, Inc. 



Award of Contract No. 2271 : 
Runway 28 s Pavement G''OQ. ing 



No. 90-0046 



Resolution awarding Contract No. 2271 
to Penhall Co. in the amount of 
$191 ,216.00. 



Bid Call - Contract No. 1864 : 

Road R-6 Reconstruction and Asphalt Concrete Ove^lav 



No. 90-0047 



Resolution approving the scope, budget 
and schedule for Contract No. 1864, 
and authorizing the Director call for 
bids and to award this contract to the 
lowest, qualified and responsive 
bidder . 



10. Resolution Ratifying Personnel Actions 
No. 90-0048 



Resolution, in accordance with the 
requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



" n tes, March 2C . 199C , Page 6 



G. PUBLIC HEARING: 

The Public Hearing v.as convened at 10:22 AM and concluded at 10:24 AM, 
there being no requests to speak. 

1 1 . Hearing en Airport Valet Parking Marketing Program 

Mr. Turpen said that staff will return at the next meeting with the 
appropriate resolution. 



The Commission recessed the meeting at 10:24 AM and reconvened at 11:00 AM 
when a vote was taken on item no. 1. Commissioners Bernstein and Goosby 
were excused during the recess and did not return. 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS I MAINTENANCE: 
The following items were adopted unanimously. 

1 . Awa-': : "g the Sale c f the Series E Bonds 

No. 90-0036 (1) Establishing terms and interest 

rates of the Series E Bonds 
pursuant to the results of the 
competitive bid (ninth supple- 
mental amendment to master bond 
resolution); and. 

No. 90-0037 (2) Awarding sale of the Series E 

Bonds to the lowest bidder. 

Ms. Angela Gittens, Deputy Director, Business and Finance, told the 
Commission that there were six bidders for the Series E bonds. The 
bid was confirmed and the best bidder was Dean Witter Reynolds at a 
true interest cost of 7. 4963317,,. 



H. NEW BUSINESS: 

There was no discussion by the Commission, 



I. CORRESPONDENCE: 

There was no discussion bv the Commission. 



Minutes, March 20, 1990, Page 7 



K. ADJOURNMENT: 

There being nc further calendared business before the Commission the 
meeting adjourned at 11:02 AM. 



lilAAjJlLI^J^^ 



J/ean Caramatti 
Commission Secretary 



Minutes. March 20, 1990. Page 8 



■ SAN FRANCISCO 
AIRPORTS COMMISSION 




•CO 



MINUTES 



April 17, 1990 
and 



April 19, 1990 
(Continued Meeting) 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L. GOOSBY 

Vict President 

DONALD R. STEPHENS 
SHARON B. DUVALL 
PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

April 17, 1990 
Continued to April 19, 1990 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 



C. ADOPTION OF MINUTES: 



Regular meeting of 

April 3, 1990 90-0063 



ITEMS INITIATED BY COMMISSIONERS: 



E. PENDING LEGISLATION: 



State Legislation: AB3147, 

AB4135, SB2405, SB2738, SB2256 90-0064 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

2. Denial of Advertising on Self- 
Service Luggage Carts 

3. Authorization to Conduct a Pre-Bid 
Conference for Operation of 
Automobile Rental Services 

4. Authorization to Conduct a Pre- 
Bid Conference for South Terminal 
Cigarette Vending Lease 90-0065- 

5. Termination of South Terminal 
Cigarette Vending Lease No. 
88-0208 and Permit Authorization 
to Establish Interim South 
Terminal Cigarette Vending Sales 

A) Termination of South Terminal 
Cigarette Vending Lease No. 
88-0208 - C.V. Ventures, Inc. 

as Lessee 90-0066 

B) Permit Authorization to Kyo M. 
Ahn Establishing Interim 
South Terminal Cigarette 
Vending Sales Pending Re-Bid 
of South Terminal Cigarette 
Vending Lease 90-0067 



Anderson Pacific Engineering 
Construction Inc.'s Request for 
the Substitution of Electrical 
Services Company for Albert 
Electric Company, Inc. as 
Electrical Subcontractor on 
Airport Contract No. 1011B.1 



G. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

7. Award of Contract No. 1876: 
North Terminal Holding Areas 

and Boarding Area 'E' Roofing 90-0068 5-6 

8. Award of Contract No. 2245: 
International Terminal Cart 
Road Underpass - Draining 

Pump Station Improvement 90-0069 6 

9. Declaration of Emergency - 
Contract No. 2301 : Emergency 
Repair of 20" Water Main, North 

Oxidation Pond 90-0070 6 



H. NEW BUSINESS: 

I. CORRESPONDENCE: 

J. CLOSED SESSION: 

K. ADJOURNMENT 



Minutes, Apri ] 17. 1990. Page 2 



Minutes 

of the 

Airports Commission Meeting 

April 17, 1990 

and the Continued Meeting of 

April 19, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:25 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Z. L. Goosby, Vice President 

Sharon 3. Duval 1 
Patri ck A. Murphy 

Absent: Morris Bernstein, President 

Donald R. Stephens 



CLOSED SESSION: 

The meeting recessed at 9:27 AM to go into closed session and reconvened 
at 9:50 AM. 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of April 3, 1990 were adopted by order 
of the Commission Vice President. 

No. 90-0063 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



Minutes, Apt i i 17, 1990, Page 3 



PENDING LEGISLATION: 

The following item was adopted unanimously. 

1 . State Legislation 

No. 90-0064 Review and recommendations on AB3147, 

AB4135, SB2405, SB2738, SB2256, SB2259 
and SB2895. 

Mr. Lou Turpen, Airport Director, said that staff is offering for the 
Commission's review recommendations on various bills before the State 
legislature concerning airport matters. He asked that the Commission 
approve the attached resolution which will allow staff to proceed in 
the manner outlined for each specific bill. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 2 was removed from the calendar. A court reporter's transcript 
of this item is available upon request. 

2. Denial of Advertising on Self-Service Luggage Carts 

Resolution denying Quality Vending's 
request to place advertising on the 
self-service luggage carts. 



Item No. 3 was put over. 

3. Authorization to Conduct a Pre-Bid Conference for Operation of 
Automobile Rental Services 

Resolution authorizing a Pre-Bid 
Conference for operation of Automobile 
Rental Services. 

Mr. Turpen asked that this item be put over. He explained that in 
looking at this and the development of the master plan in the 
intervening period it was his view that this pre-bid conference 
should be postponed. He said that the development of the Airport's 
rental car facilities is at a particularly critical point. and as we 
move through the environmental process the next six to eight months 
will clearly set forth exactly what those facilities will be. He 
felt that it would be counter-productive, both from the Commission's 
perspective as well as from businesses who will be competing for this 
opportunity, to start this process now and then be forced to amend it 
because of the results of the environmental process. He said that he 
would file another report with the Commission in about two to three 
weeks regarding the status and the implications of the environmental 
process . 

Commissioner Goosby asked those individuals who requested permission 
to address the Commission on this issue if they wished to rescind 
their requests. 

All requests to address the Commission on this item were rescinded. 



Minutes , Apri 1 17, 1990, Page 4 



Item no. 4 and 5 were called together. 

4. Authorization to Conduct a Pre-Bid Conference for South Termina' 
Cigarette Vending Lease 

No. 90-0065 



Termination of South Terminal Cigarette Vending Lease No. 88-0208 and 
Permit Authorization to Establish Interim South Terminal Cigarette 
Vending Sales 

No. 90-0066 A) Resolution approving the termination 

of South Terminal Cigarette Vending 
Lease No. 88-0208 - C.V. Ventures, 
Inc. , as Lessee. 

No. 90-0067 B) Resolution approving permit authori- 

authorization to Kyo M. Ahn estab- 
lishing interim South Terminal 
cigarette vending sales pending 
re-bid of the South Terminal 
Cigarette Vending Lease. 

Mr. Turpen said that staff was requesting permission to terminate the 
South Terminal Cigarette Vending lease, put in another vendor 
temporarily and ask for permission to bid. He said that this action 
stems from a failure to perform and that there is no controvery. He 
explained that the temporary substitution is the winner of the North 
and International terminal bids. 



A court reporter's transcript of item no. 6 is available upon request. 
This item was also discussed when the Airports Commission reconvened its 
meeting on Thursday, April 19, at 5:30 PM in Room 228, City Hall, San 
Francisco. A court reporter's transcript is also available upon request 
for that session. 

6. Anderson Pacific Engineering Construction Inc., Request for the 
Substitution of Electrical Services Company for Albert Electric 
Company, Inc. as Electrical Subcontractor on Airport Contract No. 
1011B.1 

Resolution deciding to approve or 
disapprove Anderson Pacific's request 
for the substitution of Electrical 
Services Company for Albert Electric 
Company as Electrical Subcontractor. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

7. Award of Contract No. 1876: 

North Terminal Holding Areas and Boarding Area "E" Roofing 



Minutes , Apii 1 17 . '990, Page 5 



No. 90-0068 



Resolution awarding Contract No. 1876 
to California Roofing Co. in the 
amount of $289,793.00. 



Award of Contract No. 2245 : 

International Terminal Cart Road Underpass - Draining Pump Station 

Improvement 



No. 90-0069 



Resolution awarding Contract No. 2245 
to E. Mitchell, Inc. in the amount of 
$68,310.00. 



Declaration of Emergency - Contract No. 2301 : 

Emergency Repair of 20" Hater Main, North Oxidation Pond 



No. 90-0070 



Resolution ratifying the action of the 
President of the Commission in 
declaring an emergency and directing 
the Director of the Airports to effect 
the necessary repairs. 



H. NEW BUSINESS: 

There was no discussion by the Commission. 



I. CORRESPONDENCE: 

There was no discussion by the Commission. 



RECESS: 

There being no further calendared business before the Commission the 
meeting recessed at 11:10 AM and reconvened on Thursday, April 19, 1990 at 
5:30 PM in Room 228, City Hall, San Francisco. 




>ap Caramatti 
.omjnission Secretary 



Minutes, Apr i 1 1"? 1990, Page 6 



r>u ri\i 11. ji iL'.urTMi_ - c a t i_ i tl_ inu : r ha » el J— t><4l-u-»ltJ B-y3 KUt/Ui 




Dollar $y»ttm«. Ine. 
April 13, 1990 Executive Of fieo 

61 41 W. Century Blvd. 

P.O. Box 45048 

Los Angalta. C A 9004S-0048 

(21 31 776-8100 • Tolox 673373 

YfX VKX § 415/876-7875 

Mr*. Joan Caramatti 

commission seoretary 

Airports Commission 

City and County of San Francisco 

San Francisco Int'l Airport 

San Francisco, California 94128 

RE: Memorandum dated April 9, 1990 - Authorization to Proceed with a 
Pre-Bid Conference for operation of Automobile Rental Services 

Dear Mrs. Caramatti; 

I will be unable to personally attend the Commission meeting on Tuesday, 
April 17th, at which the captioned item will be considered and wish to 
make my thoughts known through this letter. Mr. Turpen's memo (the last 
paragraph of Page 1) mentions restricting the number of on-airport 
ready/return facilities to five and a parenthetical note " (typically,' the 
top five bidders) ". 

There are presently five companies operating ready/return areas at SFO 
and I request that the Airports Commission permit the existing on-airport 
service facility operators to continue to occupy their on-airport service 
facility sites regardless of bid ranking, provided they are one of the 
six successful bidders. It would be a monumentally expensive task to 
relocate an on-airport facility to an off-airport site for the short term 
of this agreement. Also, any new operator coming on-airport would 
already have in place adequate off-airport facilities to accommodate 
ready/return functions. I believe that to put an existing concessionaire 
who has contributed to the airport for well over ten years in a position 
of possibly relocating facilities for such a short term at a very 
substantial expense is unnecessary to achieve the Airport's goals. 

Thank you and the Commission for considering my comments. 

Best 




Gary L. Paxton 
senior vice president 
Operations & Properties 

OLP/pso 
0413-1 

cc: Ronald D. Gonzales - via fax t 415-876-7875 
Jim Saunders - VIA FAX f 415-697-4074 



United Statu. Canada, Latin Arnanca. Ca"0l»»n. Europa. Uid-Etit fa Africa 



45 



HD 



/SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



,- MAY 1, 1990 



DOCl 

- 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsident 

DR. Z. L. GOOSBY 

Vict Prtsidtnt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

May 1 , 1990 ' 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 



ADOPTION OF MINUTES: 

Regular meeting of 

April 17, 1990 90-0071 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Anderson Pacific Engineering 
Construction Inc.'s Request to 
Substitute Albert Electric 
Company, Inc., Electrical 
Subcontractor on Airport 

Contract No. 1011B.1 3 

(See Court Reporter's transcript.) 

2. Award of Contract No. 1977: 
Improvements to Electrical 
Distribution System - Rosendin 

Electric 90-0073 4 

3. Self-Service Carts - Quality 

Vending Proprietary, Ltd. 90-0072 3,7 
(See Court Reporter's transcript) 

4. Selection of Co-Senior Managers 
for the Proposed Issuance of a 

Delayed Bond Closing Contract 4 

5. Award of Agreement - Airport 
Information Booths - Polaris 

Research and Development 90-0074 4-5 

6. Authorization to Receive Bids 
for Lease of North Terminal 

Candy Store 90-0075 5 

7. Extension of the Third Modifica- 
tion to Agreement for Airport 
Medi cal Clinic Uni t unti 1 

June 30, 1992 90-0076 6 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

8. Retirement Resolution: 

Robert Larsen 90-0077 6 

9. Exercise of Options for Lease 

No. 89-0120 and 89-0121, 90-0078 

Acosta Catering 90-0079 6 

10. Bid Call - Contract No. 2274: 
International Terminal Pavement 

Slurry Seal 90-0080 6 

11. Resolution Ratifying Personnel 

Actions 90-0081 6 



G. NEN BUSINESS: 

H. CORRESPONDENCE: 

I. CLOSED SESSION 

J. ADJOURNMENT: 



Minutes . May 1 , 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

May 1 , 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:07 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Z. L. Goosby, Vice President 

Sharon B. Duval 1 
Patrick A. Murphy 

Absent: Morris Bernstein, President 

Donald R. Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of April 17, 1990 and the continued 
meeting of April 19, 1990 were adopted by order of the Commission Vice 
President. 

No. 90-0071 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 1 was continued to June 5, 1990. A court reporter's transcript 
is available for this item. 

1 . Anderson Pacific Engineering Construction Iic.'s Request to 

Substitute Albe-'t Electric Company, Inc., Eiect'-ical Subcontractor on 
Airport Contract Hz. 1Q1 15. 1 

Minutes. May 1 , 1990, Page 3 



Item no. 2 was adopted unanimously. 

2. Award of Contract No. 1977 : 

Improvements to Electrical Distribution System 
Rosendin Electric 

No. 90-0073 Resolution awarding Contract No. 1977, 

Improvements to Electrical Distribution 
System to Rosendin Electric in the 
amount of $215,000. 

Commissioner Goosby asked if this company received MBE status. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations & 
Maintenance, responded that since they make over $7-mi 1 1 i on a year 
they are no longer considered an MBE. 



Item no. 3 was discussed and then put over to the end of the calendar for 
vote. A court reporter's transcript is available for this item. 

3. Self-Service Luggage Carts - Quality Vending Proprietary, Ltd. 

No. 90-0072 Resolution confirming Airports 

Commission's waiver of requirement 
that Quality Vending Proprietary, Ltd 
be qualified to do business in 
California at time of award of 
self-service luggage cart agreement. 



Item No. 4 was put over. 

4. Selection of Co-Senior Managers for the Proposed Issuance of a 
Delayed Bond Closing Contract 

Resolution authorizing the selection 
of First Boston and Pryor, McClendon, 
Counts to serve as co-senior managers 
for the proposed issuance of a delayed 
bond closing product to refund the 
outstanding Series D Bonds. 



Item nos . 5 through 7 were adopted unanimously. 

5. Award of Agreement - Airport Information Booths 
Polaris Research and Development 

No. 90-0074 

Mr. Turpen told the Commission that Polaris appears to be an 
excellent firm and he believed they will do an outstanding job. 

Commissioner Goosby asked if this was a Prop J contract. 

Mr. Turpen responded that it was. 

Ms. Angela Gittens, Deputy Director for Business and Finance, added 
that the Controller has not yet approved the contract. 



Minutes, May 1 , 1990, Page 4 



Commissioner Goosby wondered if City employees could do this 
cheaper. 



6. Authorization to Receive Bids for Lease of North Terminal Candy Store 

No. 90-0075 Resolution approving leasehold 

specifications and authorizing staff 
to receive bids for the lease of the 
North Terminal Candy Store. 

Mr. Turpen said that this follows up the See's Candy Cart trial which 
proved to be very successful. This is the Boarding Area 'F' location. 

Ms. Gittens said that this bid will also contain the currently leased 
candy operation. She said that flowers and greeting cards will be 
optional rather than mandatory as originally required. 

Commissioner Duvall asked if the See's Candy Cart would be 

stand-alone or wrapped into this program. 

Ms. Gittens responded that the cart will be wrapped into this 
program. The winning bidder will determine whether or not to offer 
See's or another high quality candy. 

Commissioner Duvall asked if the See's cart was a direct license with 
See's or through an operator. 

Ms. Gittens thought it was through a direct license with See's. 

Mr. Turpen thought it was through an operator. 

Commissioner Duvall asked Ms. Gittens if she felt the operator would 
bid on thi s package. 

Ms. Gittens responded that she did not know. 

Commissioner Goosby asked if this was a small business set aside. 

Ms. Gittens responded that it is not currently a small business set 
aside. She said that anyone can bid on this space. 

Commissioner Goosby said that according to the City Attorney the 
Airport can set aside for a local small business. 

Ms. Gittens responded that we can't do that for concessions. 

Mr. Garibaldi said that we can set aside for local small businesses 
as long as it is race and sex neutral. 

Ms. Gittens added that it has been the Commission's practice that 
small business has not been limited to local. The Commission has 
never set aside a concession contract for a local business, just 
small business. She said that staff did consider setting this aside 
for a small business, however the experience requirements, although 
the minimum is within the amount for a small business set aside, when 
we looked at the pool in this business, having a small business set 
aside would t nock out an awful lot of the potential bidders. She 
said that of the companies that came to the pre-bid conference, it 
looked like only two would qualify as SBEs. 

Commissioner Goosby thought it would be a nice opportunity for a 

small business. 



Minutes, May 1 , 1990, Page 5 



Ms. Gittens said that the Airport's Outreach Officer has been very 
successful in getting businesses interested in this opportunity and 
it is for that reason that the specifications were changed so that 
candy experience was no longer required. She said that that 
requirement would have knocked out all but one potential bidder in 
the pool . 



7 . Extension of the Third Modification to Agreement for Airport Medical 
Clinic Until June 30, 1992 

No. 90-0076 Recommendation of a two-year extension 

of the current operator's Agreement 
until June 30, 1992. 

Mr. Turpen explained that the Clinic has been at the Airport since 
1971. We are in the process of developing a new international 
terminal concept. It is anticipated that the Medical Clinic will be 
moved to the new terminal. He said that a significant amount of 
money went into this facility in terms of proprietor equipment. He 
thought it made more sense to wait until there was a better 
definition on what is going to happen in the future, much like the 
rent-a-car issue, before we move ahead. 



F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

8 . Retirement Resolution : 

Robert Larsen 

No. 90-0077 



Exercise of Options for Lease Nos. 89-0120 and 89-0121, Acosta 
Catering 

No. 90-0078 Resolution approving the renewal 

No. 90-0079 options of Lease Nos. 89-0120 and 

89-0121 for Acosta Catering effective 
July 1, 1990, for one year, under the 
same terms and conditions. 



10. Bid Call - Contract No. 2274 : 

International Terminal Pavement Slurry Seal 

No. 90-0080 Resolution approving the scope, budget 

and schedule for Contract No. 2274, 
and authorizing the Airports Director 
to cal 1 for bids. 



1 1 . Resolution Ratifying Personnel Actions 
No. 90-0081 

Minutes . May 1 , 1990, Page 6 



G. NEH BUSINESS: 

There was no discussion by the Commission 



H. CORRESPONDENCE: 

There was no discussion by the Commission, 



I. CLOSED SESSION: 

The meeting recessed at 10:35 AM to go into closed session and reconvened 
at 10:47 AM. 



E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 
Item no. 3 was adopted unanimously. 

3. Self-Service Luggage Carts - Quality Vending Proprietary, Ltd 
No. 90-0072 



J. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:50 AM. 

f x, 

/ 



Jean Caramatti 
Commission Secretary 



Minutes, May 1 . 1990, Page 7 



r 
US 

2 



SAN FRANCISCO 



. 



AIRPORTS COMMISSION 




^ 



MINUTES 



DOC 3 DEPT. 



'JUNE 5, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsident 

DR. Z. L. GOOSBY 

Vict President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 5, 1990 



CALENDAR 
SECTION 

A. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



RESOLUTION 
NUMBER 



PAGE 



ROLL CALL: 

ADOPTION OF MINUTES: 

Regular meeting of May 1, 1990 90-0083 



DIRECTOR'S REPORTS: 

Distribution of Runway 
Reconfiguration Study Phase I 
Draft Report 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Anderson Pacific Engineering 
Construction Inc., Request to 
Substitute Albert Electric 
Company, Inc., Electrical 
Subcontractor on Contract 
No. 1011B.1 

Selection of Co-Senior Managers 
for the Proposed Issuance of a 
Delayed Bond Closing Project 



90-0084 



Authorization to Award Pacific 
Bazaar Lease to Host International , 
Inc. 90-0085 



Authorization to Award North 
Terminal Executive Stationery 
Store Lease to EFS 



On-Airport Renta' 
Hold Over 



Cars: Lease 



90-0086 



90-0087 
90-0088 
90-0089 
90-0090 
90-0091 



Self-Service Luggage Carts - 
Quality Vending Proprietary, 

Ltd. 



90-0092 



8. Authorization to Receive Bids for 
Lease of North Terminal Crab and 
Seafood Lease 

9. Authorization to Purchase Eight 
Hotel-Motel Display Boards 90-0093 

10. Bid Call - Contract No. 2298: 

International Terminal Fifth Floor 
Alternation 90-0094 



H. CONSENT CALENDAR OF ROUTINA 

ADMINISTRATIVE MATTERS: 

11. Retirement Resolution: 

Ed Conway 90-0095 

12. Retirement Resolution: 

John Galvin 90-0096 

13. Bid Call - Contract No. 2318: 
Runway 28L Pavement Grooving 

(West End) 90-0097 

14. Bid Call - Contract No. 1843IB: 
International Terminal Crawlspace 
Demolition and Removal of 

Abandoned Uti lities 90-0098 

15. Bid Call - Contract No. 2300: 
North Terminal Furniture 

Replacement 90-0099 

16. Sale of Former Northwest 
Improvements to USAir 90-0100 

17. Sublease between American 
Airlines, Inc. and GTE Mobilnet 

of Californa, Ltd. 90-0101 

18. Resolution Authorizing the Award 
of Contract to Produce the 

Airport's 1990 Annual Report 90-0102 

19. Contract with the Corporation of 
Fine Arts Museums, San Francisco - 
$85,000.00 90-0103 

20. $7,500 Contract with the Center 
for Puppetry Arts, Atlanta, 

Georgia 90-0104 

21. Resolution Ratifying Approval of 
Standby Service Pay 90-0105 

22. Resolution Tatifying Personnel 

Actions 90-0106 

23. Travel /Training for Airport 
Representatives 90-0107 



NEW BUSINESS: 
Minutes, June 5, 1990, Page 2 



CORRESPONDENCE 



CLOSED SESSION: 

25. Smarte Carte vs. CCofSF, et al . 
- S.F. Superior Court No. 
917-818 

26. Albert Electric vs. CCofSF 

27. Settlement of Litigation - 

United Airlines 90-0108 



ADJOURNMENT: 



Minutes, June 5, 1990, Page 3 



Minutes 

of the 

Airports Commission Meeting 

June 5, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 
Patrick A. Murphy 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of May 1, 1990 were adopted by order of 
the Commission President. 

No. 90-0083 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti, 
Commission Secretary announced 
unanimous adoption of resolution no. 
90-0082 regarding the settlement of a 
litigated claim at the closed session 
of May 1 , 1990. 



A complete court reporter's transcript of this meeting is available upon 
request. 

E. DIRECTOR'S REPORT: 

1 . Distribution of Runway Reconfiguration Study Phase I Draft Report 

Commission's concurrence to distribute 
copies of Draft Report for Runway 
Reconfiguration Study, Phase I, to 
interested parties. 

Minutes , June 5. 1990. Page 4 



F. ITEMS INITIATED BY COMMISSIONERS: 



G. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 1 was removed from the calendar. 

2. Anderson Pacific Engineering Construction Inc.'s Request to 

Substitute Albert Electric Company, Inc., Electrical Subcontractor on 
Airport Contract No. 1011B.1 



Item nos . 3 through 7 were adopted unanimously. 

3. Selection of Co-Senior Managers for the Proposed Issuance of a 
Delayed Bond Closing Project 

No. 90-0084 No. 90-Resol ution authorizing the 

selection of First Boston and Pryor 
McClendon, and Counts to serve as 
co-senior managers for the proposed 
issuance of a delayed bond closing 
product to refund the outstanding 
Series D Bonds. 



4. Authorization to Award Pacific Bazaar Lease to Host International 
Inc. 



No. 90-0085 



5. Authorization to Award North Terminal Executive Stationery Store 
Lease to EFS 

No. 90-0086 



On-Airport Rental Cars: Lease Hold Over 

No. 90-0087 Resolution authorizing a month-to- 

No. 90-0088 month hold over with the five current 

No. 90-0089 on-Airport Rental Car Operators. 

No. 90-0090 
No. 90-0091 



Self-Service Luggage Carts - Quality Vending Proprietary, Ltd. 

No. 90-0092 Resolution confirming Airports 

Commission's waiver of requirement 
that Quality Vending Proprietary, Ltd. 
be qualified to do business in 
California at time of award of 
self-service luggage cart agreement. 



Minutes, June 5. 1990, Page 5 



Item No. 8 was put over. 

8. Authorization to Receive Bids for Lease of North Terminal Crab and 



Seafood Lease 



Resolution approving leasehold 
specifications and authorizing staff 
to receive bids for lease of the North 
Terminal Crab and Seafood Kiosks. 



Item nos. 9 and 10 were adopted unanimously. 

9. Authorization to Purchase Eight Hotel-Motel Display Boards 

No. 90-0093 Resolution authorizing purchase of 

eight Hotel-Motel Display Boards for 
Ackerley Airport Advertising, Inc. in 
form of rent credi t . 



10. Bid Call - Airport Contract No. 2298 : 

International Terminal Fifth Floor Alteration 

No. 90-0094 Resolution approving the scope, budget 

and schedule for Contract No. 2298 and 
authorizing the Director to call for 
bids and to award this contract to the 
lowest, qualified and responsive 
bidder . 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

1 1 . Retirement Resolution : 
Ed Conway 

No. 90-0095 

12 . Retirement Resolution : 
John Galvin 

No. 90-0096 



13. Bid Call - Airport Contract No. 2318 : 
Rur<wa y 28L Pavement Grooving (West End) 

No. 90-0097 Resolution approving the scope, budget 

and schedule for Contract No. 2318, 
and authorizing the Director to call 
for bids and to award this contract to 
the lowest, qualified and responsive 
bidder. 



Minutes, June 5, 1990, Page 6 



14. Bid Call - Airport Contract No. 1843IB : 
International Terminal Crawlspace 
Demolition and Removal of Abandoned Utilities 

No. 90-0098 Resolution approving the scope, budget 

and schedule for Contract No. 1843IB, 
and authorizing the Director to call 
for bids and to award this contract to 
the lowest, qualified and responsive 
bidder. 



15. Bid Call - Airport Contract No. 2300 : 
North Terminal Furniture Replacement 

No. 90-0099 Resolution approving the scope, budget 

and schedule for Contract No. 2300, 
and authorizing the Director to call 
for bids and to award this contract to 
the lowest, qualified and responsive 
bidder. 



16. Sale of Former Northwest Improvements to USAir 
No. 90-0100 



1 7 . Sublease Between American Airlines, Inc. and GTE Mobilnet of 
California, Ltd. 

No. 90-0101 Resolution approving a sublease 

between American Airlines, Inc. and 
GTE Mobilnet of California, Ltd. for 
installation of a communication 
equipment room at American Airlines' 
Superbay. 



18. Resolution Authorizing the Award of Contract to Produce the Airport's 
1990 Annual Report 

No. 90-0102 



19. Contract with the Corporation of Fine Arts Museums, San Francisco - 
$85,000 

No. 90-0103 Resolution approving contract for 

$85,000 with the Corporation of Fine 
Arts Museums, San Francisco (COFAM) 
for the purpose of providing and 
implementing temporary exnibitions at 
San Francisco International Airport 
for the Fiscal Year 1990/1991 . 



Minutes, June 5, 1990, Page 7 



20. $7,500 Contract with the Center for Puppetry Arts, Atlanta, Georgia 

No. 90-0104 Contract for $7,500 with the Center 

for Puppetry Arts, Atlanta, for the 
purpose of providing objects for 
exhibition in January-February 1991 in 
conjunction with the Festival of 
Indonesia. 



21 . Resolution Ratifying Approval of Standby Service Pay 

No. 90-0105 Resolution, in accordance with Salary 

Standardization Ordinance, approving 
standby service pay. 



22 . Resolution Ratifying Personnel Actions 

No. 90-0106 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



23. Travel /Trai ning for Airport Representatives 
No. 909-0107 



I. PUBLIC HEARING: 

The Public Hearing was convened at 10:29 AM. There being no requests to 
speak from the public, the hearing was closed at 10:33 AM. 

24. Hearing on Setting Penalty Rates for Excess Water Use 

Hearing to discuss adopting the San 
Francisco Public Utilities 
Commission's Water Conservation 
Program. 



J. NEW BUSINESS: 

There was no discussion by the Commission 



K. CORRESPONDENCE: 

There was no discussion by the Commission. 

Minutes. June 5, 1990, Page 8 



* * * 



L. CLOSED SESSION: 

25. Smarte Carte vs. City and County of San Francisco, et. al 
San Francisco Superior Court No. 917-818. 



26. Albert Electric vs. City and County of San Francisco 



M. ADJOURNMENT: 

There being no further calendared business before the Commission, the 
meeting adjourned at 10:37 Am to go into closed session. 

. fo.UjU* nuu^~ 

Jean Caramatti 
Commission Secretary 



Minutes, June 5, 1990, Page 9 



1 45 



^SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCI ~— 

SEP l 1 1990 

PUELIC I .Y 



MINUTES 



JUNE 19, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsidtnt 

DR. Z. L. GOOSBY 

Vict Prtsidtnt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 19, 1990 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ANNOUNCEMENT BY SECRETARY: 3 

D. ITEMS INITIATED BY COMMISSIONERS: 3 



E. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS & MAINTENANCE: 

1. Expressing Airports Commission's 
Strong Objection to Certain 
Portions of the San Mateo 
County Transportation System 

Management Program 90-0109 3-8 

2. Shuttle Bus Agreement No. 

68252, Modification No. 8 90-0110 8-9 

3. Resolution Setting Penalty 

Rates for Excess Water Use 90-0111 9 

4. Airport Improvement Program 

(A. I. P. No. 11) 90-0112 9 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

5. Retirement Resolution: 
Richard O'Brien 

6. Host International, Inc. - 
Design Approval 

7. Resolution Approving Rental 
Credit to Mexlcana Airlines 

8. Resolution Approving Sublease 
by Pan American World Airways 
to Mexlcana Alrl ines 

9. Sublease between Delta Airlines 
Inc. a r d US/Air, Inc . 



90-0113 


9 


90-0114 


9 


90-0115 


9 


90-0116 


10 


90-0117 


10 



10. Contract for Holiday Decor, San 
Francisco International Airport 

1990 90-0118 10 

11. Travel/Training for Fiscal Year 

1990/91 90-0119 10 



NEW BUSINESS: 

Transportation Alternatives 10-11 

CORRESPONDENCE: 11 

ADJOURNMENT: 11 



Minutes, June 19, 1990. Page 2 



Minutes 

of the 

Airports Commission Meeting 

June 19, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. In Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 

Absent: 



Z. L. Goosby, Vice President 
Donald R. Stephens 
Patrick A. Murphy 

Morris Bernstein, President 
Sharon B. Duval 1 



C. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti, 
Commission Secretary announced 
unanimous adoption of resolution no. 
90-0108 regarding the settlement of 
litigation entitled City and County of 
San Francisco vs. United Airlines by 
acceptance of $24,575.48 at the closed 
session of June 5, 1990. 



D. ITEMS INITIATED BY COMMISSIONERS: 

There were no Items Initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item no. 1 was adopted unanimously as amended. 

1 . Expressing Airports Commission's Strong Objection to Certain Portions 
of the San Mateo County Transportation System Management Program 



No. 90-0109 



Minutes. June 19. 1990, Page 3 



Mr. George Bergman, Planner with the County of San Mateo, 
representing the San Mateo County Board of Supervisors said that 
prior to this meeting the County Manager sent a copy of the San Mateo 
County Transportation System Management Plan (TSM), the ordinance and 
a cover letter to each Commissioner. He said that the San Mateo 
County Board of Supervisors will soon be adopting the TSM and the 
accompanying implementing ordinance which is aimed at reducing 
traffic congestion on the Peninsula. Towards this end, the plan 
proposes techniques such as ride sharing, shuttle buses, flexible 
work hours, telecomputing, etc. The plan culminates with an 
ordinance that specifically requires that large public and private 
employers, Including commercial landlords, prepare a program which 
will achieve 25 percent employee participation In alternatives to 
single occupant commuting over the next five years. 

Mr. Bergman said that the ordinance, as written, has Implications on 
the Airports Commission both as an employer and as an owner of leased 
commercial space. The ordinance requires an employee survey of 
current employee commute patterns, distribution of prepared commute 
alternative information and preparation of a program demonstrating 
how 25 percent of all employees will commute to work by a mode other 
than a single occupant automobile. 

Mr. Bergman said that it is important to note that although the 
ordinance as written applies to the Airports Commission both as an 
employer and owner of leased commercial space, their attorneys are 
still reviewing the legality of these provisions. He also assured 
the Commission that the provision authorizing the imposition of a fee 
of up to $5.00 per employee was only an option for the San Mateo 
County of Board of Supervisors to consider at a later date. The 
ordinance before them does not establish the fee, it merely provides 
the authority for a fee up to $5.00. The Board could assess such a 
fee at a later date depending on the fiscal situation. 

Mr. Bergman said that the San Mateo County Board of Supervisors 
requests the Airports Commission's support and cooperation in 
carrying out the intent of the plan. They believe that relieving 
traffic congestion and promoting regional cooperation have been 
s-tated priorities of both counties. They also recognize the long 
standing and on-going efforts that the Airport has taken to improve 
transportation at the Airport. He said that San Mateo County looks 
forward to working with the Airport to further reduce congestion on 
the Bayshore freeway. 

Commissioner Murphy asked Mr. Bergman how the Airport could ensure 
that 25 percent of the employees working at the Airport would 
participate in such a program. 

Mr. Bergman responded that according to his understanding of the 
operation of the Airport, the City and County of San Francisco owns 
the land and leases out to firms. Firms such as United Airlines, 
Flying Tigers, Delta Airlines, TWA, etc. who employ more than 100 
people would be required to prepare their own program independent of 
the Airports Commission and the County would work with them if there 
was lack of cooperation. He said that under the ordinance the 
Airports Commission would be responsible for Airports Commission 
staff and the lessees of commercial space within the terminals which 
is defined as a business complex under the ordinance. The owner/ 
operator of the commercial space will be the responsible for 
preparing and implementing a program. Recalcitrant employees would 
be the responsibility of the employer or the owner of the commercial 
space to prepare tf\e program and apply it, i.e. the Airports 
Commission. 



Minutes, June 19, 1990, Page 4 



Commissioner Murphy asked what the $5.00 would cover. 

Mr. Bergman responded that the $5.00 1s an option for the future. 
For the first couple of years San Mateo County anticipates receiving 
funds from Measure A, a half-cent sales tax in San Mateo County for 
road improvements. There is a fund for administering TSM. The $5.00 
was put in the ordinance as a hedge against the day when the County 
cannot rely on Measure A monies. This merely authorizes the 
assessment of a fee at a later date. He explained that the 
assessment would be to the employer based on the number of employees. 

Commissioner Murphy said that we could safely assume that that 
assessment will occur. 

Mr. Bergman said that the Board has not made any statements to that 
effect. 

Commissioner Murphy asked how the Airport could ensure 25 percent 
participation. What if employees simply refuse to participate. 

Mr. Bergman explained that the 25 percent was over a five year period. 

Commissioner Murphy wanted to know what the Airport would be in for 
if this happens. He asked if a fine would be levied. 

Mr. Bergman responded that a fine structure has been included in the 
ordinance for employers who don't prepare a program, but the 
ordinance does not address a lack of cooperation in administering it. 

Commissioner Murphy asked what would happen if the employer prepa'es 
a program and still cannot achieve 25 percent participation. 

Mr. Bergman responded that that will be determined in the future. He 
said that before a city or the Board of Supervisors requests money 
from Measure A funds, a transportation authority in the County would 
review their efforts and TSM. If the Board of Supervisors has made 
best efforts attempts at working with the Airports Commission to get 
employees to implement their plan and it is concluded that a good 
faith effort was made by everyone involved, he assumed that the 
transportation authority would sign off and issue the money, but he 
could not say for sure. 

Commissioner Murphy asked 1f this has been tried In other areas. 

Mr. Bergman responded that the C1ty of Pleasanton has an ordinance 
like this as well as communities in Southern California. 

Commissioner Murphy said that the City of Pleasanton 1s not an apples 
to apples comparison. He asked if there was a similar ordinance for 
a governmental unit the size of San Mateo County. 

Mr. Bergman responded that he was not sure but thought there might be 
in Southern California. 

Commissioner Murphy asked Mr. Burton to explain the distinction 
between leased space and 100 employees. 

Mr. Bergman responded that the major requirement of the plan applies 
to employers and operators of business complexes that have 100 or 
more employees. If a firm in the private sector has more than 100 
employees, they must prepare a program. In the case of a business 
park with an office complex operated by one manager, that manager is 
responsible for devising a program for his tenants. In the case of 
San Francisco Airport, all employers with over 100 employees must 



Minutes, June 19. 1990, Page 5 



prepare their own plans, Independent of the fact that these firms are 
leasing land from the City of San Francisco. 

Commissioner Murphy assumed that the Airport would have no 
responsibility for those companies. 

Mr. Bergman said that was correct. Those companies will coordinate 
their efforts with San Mateo County. When the Transportation 
Authority approved this plan they made it clear that this was to 
apply to the public sector as well as to the private sector. He said 
that 1n this unique situation the Airports Commission also Is an 
operator of a business complex that 1n the aggregate has more than 
100 employees among the various franchises within the terminals. 

Commissioner Stephens asked 1f the Airport would be responsible for 
making concession employees participate In this plan. 

Mr. Bergman responded it would be the Airport's responsibility but 
their attorneys are currently looking into the legality. He said 
that their attorneys have been in contact with the Airport's legal 
staff, and in fact, the Airport's attorneys prepared the staff report. 

Commissioner Goosby commented that the Airport has done much of this 
with its own employees. 

Mr. Bergman said that San Mateo County recognizes San Francisco 
Airport's efforts. He said that it is possible that SFO currently 
meets the 25 percent requirement. 

Commissioner Goosby said that the San Francisco Board of Supervisors 
should look at the feasibility of levying a $5.00 charge on commuters 
entering San Francisco from San Mateo County. 

Commissioner Murphy asked if there was a time frame. 

Mr. Bergman added that a dialogue began two or three weeks ago 
between the Airport's and San Mateo County's legal counsels and his 
comments are qualified by the outcome of those discussions. As it is 
currently written, the ordinance applies to San Francisco Airport. 

Mr. Turpen said that the ordinance is due to be heard by the San 
Mateo County Board of Supervisors on June 26. It must be approved by 
July J In order to receive any money. 

Mr. Bergman added that the statute requires that the plan be adopted 
by all of the cities of the County by the end of June. Although San 
Mateo County Is reviewing the ordinance simultaneously with the plan, 
there \% no requirement to adopt the ordinance by that date. 

Commissioner Murphy said that he was supportive of the idea of 
managing the transit problem by way of getting cars off the road and 
people into public transit or carpoollng situations. He said that he 
was very troubled that this ordinance doesn't make a lot of sense 
when applied to the largest employment complex In San Mateo County. 
He said that he was also very troubled by the "ensure" language and 
how the Airport was supposed to accomplish. He said that if he had 
to vote on this he would express grave doubts about the wisdom of 
this ordinance as presently drafted. He said that he understands what 
San Mateo is trying to accomplish but this doesn't make any sense to 
him. The Airport tends to fee out f.ont on these public policy issues 
rather than lagging behind, but we can't agree to do things that we 
have no power to cause to happen. 

Mr. Bergman again said that his Board has indicated a willingness 
towards total cooperation 1n working with the Airport staff. 

Minutes, June 19, 1990. Page 6 



Dr. Nancy Jewell Cross, spoke on behalf of Clean Air Transport 
Systems, a civic shareholder Investors organization whose goal is to 
achieve efficient transportation and clean air on no less than a 
regional basis. She felt that the Airport's relation to 
transportation has great significance in the total Bay Area. 

Dr. Cross asked if it was true that the Airport has 31,000 employees 
and 13,000 employee parking spaces. 

Mr. Turpen said that the Airport has 30,000 employees and roughly 
3,000 employee parking spaces. 

Dr. Cross said that there are reasons for strong objection at this 
point and asked the Commission not to accept the ordinance as it is 
written. She said that there are currently no practical or feasible 
alternatives for people to get to the Airport efficiently without a 
car. This Is an obligation of the San Mateo County Supervisors who 
dominate the SamTrans Board and yet haven't provided the necessary 
leadership. She did not feel that San Mateo County was in a position 
to Impose problems on the Airport until the County provided a 
reasonable plan for getting people to and from the Airport. 

Ms. Shelley Kessler, San Mateo Central Labor Council and the Airport 
Labor Coalition, said that while they are open-minded on this issue 
they do have some questions. They are concerned about traffic and 
would like to get people to and from their work sites. She said that 
this applies not only to the Airport as a 24-hour facility but to 
hospitals, markets, etc. She felt Commissioner Murphy's point was 
well taken and was concerned about the impact on employees should the 
Airport be unable to comply with the ordinance as it is currently 
written. 

Ms. Kessler said that some employee groups have collective bargaining 
agreements that address the transportation issue. She would like to 
know what impact this would have on those collective bargaining 
agreements. She said that they were also concerned about access to 
transportation. She explained that for those people who travel from 
the five Bay Area counties to get to the Airport it is difficult to 
find good transportation, especially In the off non-peak hours. She 
would like to see more transportation systems available. They 
support those alternatives that would help traffic congestion. They 
do not oppose the plan. She said that they are also concerned about 
the cost of transportation 1n outlying areas for low-Income people. 
Ms. Kessler also expressed concern about the possibility of an 
employer considering coming Into the area only to be dissuaded by the 
potential $5.00 per head fee. 

Ms. Kessler assured Mr. Bergman that she was merely expressing her 
union's concerns and her comments were not meant to be antagonistic. 

Commissioner Goosby asked Ms. Kessler 1f she was against approval of 
the ordinace at this time. 

Ms. Kessler responded that the ordinance raises definite questions 
but they were not definitely opposed to the it. They support the 
concept of better mass transit. 

Mr. Turpen said that since 1979 the Airport has been involved in a 
push toward ride-sharing and mass transit at the Airport. The 
Airport currently has a goal of 25 percent and is the first airport 
1n the country dedicated to this type of activity. He said that he 
has some serious concerns about the County dealing directly with 
Airport businesses and establishing independent plans which are not 
integrated to an overall fabric. It Is a question of control and 



Minutes, June 19, 1990, Page 7 



control is important at the Airport. He said that he is willing to 
commit his best efforts but the issue of placing the Airport in a 
position of assuring participation is a concern. 

Mr. Turpen said that the Airport generates about $1 8-mi 1 1 ion to San 
Mateo County, which is about 4-5 percent of their budget. He said 
that he was concerned about the concept of charging $5.00 a head, 
which by ordinance can go to any number. He felt that In these 
austere times for many of the surrounding municipalities and counties 
that becomes an open invitation to try and extract money from not 
only the Airport but Its tenants. He is very concerned about that 
provision as well. He would be in favor of any ordinance which 
required the Airport to file a transit plan with San Mateo County and 
make Its best efforts to reach a 25 percent goal, with the 
elimination of any fee for administration. 

Mr. Turpen said the Airport Is 1n a highly Integrated environment 
with regard to safety and security concerns. Independent relation- 
ships with the County, as a practical matter, cannot be effective 
without the Airport's wholehearted support and endorsement. 
Essentially, the Airport controls the land the tenants lease. 

Mr. Turpen recommended that the Commission oppose this 1n its current 
form. He understood the rush to pass something by July 1 because of 
legal requirements but he felt that this ordinance attempts to 
legislate a process and the manner and procedures which will be 
employed. 

Mr. Bergman explained that the plan must be adopted by July 1 but 
there is no need to approve the ordinance by that date. He said that 
the plan spells out the program and sets the policy. 

Mr. Turpen recommended adding a final resolve to the Commission's 
resolution which would read "The Airports Commission strongly objects 
to the adoption of the San Mateo County Transportation System 
Management Program as it is presently proposed." He said that the 
resolution will be transmitted to San Mateo County. 

Mr. Turpen said that the Airport has subscribed to mass transit for 
the past 11 years and has worked towards a 25 percent goal. He said 
that the Airport is not opposed to filing an integrated plan for the 
Airport and working with the tenants. He did not believe that the 
Airport should be assessed any amount legislatively for the 
administration of a plan. He felt 1t was simply a mechanism to try 
and syphon money into the treasury. 

Commissioner Goosby did not feel that giving only two weeks notice to 
a group that provides 4 percent of your revenue source was very 
congenial . 



The following Items were adopted unanimously. 

2. Shuttle Bus Agreement No. 68252, Modification No. 8 

No. 90-0110 The Airports Commission Is being 

presented witn a Resolution setting 
rates and making reimbursment for our 
Shuttle Bus Company. The resolution 
establishes the 1990 hourly rates at 
$31.1675 per basic hour and $21.6727 
per incremental hour, the payment of 
$426.12 for unanticipated 1989 

Minutes, June 19, 1990, Page 8 



employee health and welfare premiums, 
the payment of $13,609.20 for 
unanticipated 1989 insurance premiums, 
the payment of $161,905.00 over four 
quarterly payments for 1990 pass- 
through insurance payments, and 
reimbursing SFO Shuttle the difference 
between 1990 and 1989 rates for 
services rendered between January 1 
and June 30, 1990. 



Resolution Setting Penalty Rates for Excess Hater Use 

No. 90-0111 Resolution adopting the San Francisco 

Public Utilities Commission's Water 
Conservation Program. 



Airport Improvement Program (A.I .P. No. 11) 

No. 90-0112 Resolution approving the Projection 

Application for A. I. P. fund of $11.78- 
million and requesting the Board of 
Supervisors to authorize filing of 
Project Application and acceptance of 
the resulting grant offer. 

Mr. Turpen explained that this simply puts these funds into the 
escrow account. The money will become available when the 707 issue 
is resolved. 



F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 

5. Retirement Resolution: 
Richard O'Brien 

No. 90-0113 

6. Host International, Inc. - Design Approval 

No. 90-0114 Resolution approving schematic design 

for an additional Host food/beverage 
facility In Boarding Area C. 

7. Resolution Approving Rental Credit to Mexicana Airlines 

No. 90-0115 Resolution approving a rental credit 

to Mexicana Airlines for costs 
associated with the relocation of 
their cargo facility as a result of 
the October 1989 earthquake. 

Minutes, June 19, 1990. Page 9 



8. Resolution Approving Sublease by Pan American Horld Airways to 
Hexi cana Airl ines 

No. 90-0116 Resolution approving the sublease cf 

cargo space in the hangar located on 
Plot 1, by Pan American to Mexicana. 



9. Sublease between Delta Airlines, Inc. and USAir, Inc. 

No. 90-0117 Resolution approving the sublease of a 

portion of the Delta Aircraft 
Maintenance Facility to USAir, Inc. on 
Airport Plot 12. 



10. Contract for Holiday Decor, San Francisco International Airport 1990 

No. 90-0118 Contract for holiday decor for Holiday 

Season, December 1990. 



11 . Travel/Training Fiscal Year 1990/91 
No. 90-0119 



NEW BUSINESS: 

Dr. Nancy Jewel Cross said that rail access to the Airport can be 
accomplished in a matter of a few months... it doesn't take 20 years or a 
BART connection between Daly City and the Airport, all 1t needs is a 
station with CalTrain. The Airport must persuade the Public Utilities 
Commission. She said that she has a letter from the PUC Indicating that 
1t is feasible to approach them on this issue, how she can apply and to 
object to the inadequacy of service to the Airport. The PUC then makes a 
ruling that public convenience and necessity require that there be a stop 
at the Airport. She said that It 1s her understanding that the Airport is 
prepared to place a people mover system there as soon as possible. She 
said that she has also spoken with Airport staff and has been told that it 
would be possible to use a shuttle bus 1n the Interim. She said that the 
Airport has not been resistant to this effort, it 1s the San Mateo County 
Board of Supervisors. The Supervisors do not deny that an Airport station 
for CalTrain could be functioning within a few months. They claim that It 
would Interfere with the lucratlveness of their 7F bus route. She said 
that they haven't had the 7F bus route for many months because of the 
strike. She said that the Supervisors claim that they would consider 1t 
when a BART station is built, but that is Si-billion and 20 years away. 

Commissioner Goosby suggested to Dr. Cross that she take this up with MTC. 

Dr. Cross said that the MTC is run like a cartel. They won't do anything 
that the County Supervisors don't want to do. She said that the Mayor of 
Mi 1 7 brae thinks it's a good idea but he needs support. She said that she 
is willing to make the application if the Airport is willing to endorse it. 

Dr. Cross presented the Commission with a leaflet describing how the 
Airport can connect with BART In San Francisco to the CalTrain Station. 
She said that the Muni Metro connection Is due to be completed in 1992. 

Minutes, June 19, 1990, Page 10 



Commissioner Goosby said that the Commission would take this under 
advisement . 

Dr. Cross asked if the Airport could write her a letter indicating the 
Commission's intentions. 

Mr. Turpen told Dr. Cross that she would be notified. 



Commissioner Goosby asked that the meeting be adjourned in memory of Rea 
Bernstein, wife of Commission President Morris Bernstein, who passed away 
this morning. 



Dr. Cross added that she has approximately 600 names on a petition for 
this issue. 



* * * 

H. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 



I. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:42 AM. 




(jtHLfajJuZ^ 



'Jfcan Caramatti 
amission Secretary 



Minutes, June 19, 1990, Page 11 




Aleel the Issues and 
_Get the Answers ■ 

Should a world class 
Airport: 

1. Eave its ovn rail 
station on closest line 
located opposite its 
■ain entrance? 

2. Offer amenities 
including gratis use of 
luggage carts? 

—Or in the interest of 
lowest airline landing 
fees from sales of 
parking and cart use, 
promote automobile 
access and traffic 
congestion? 



U. DOWNTOWN 



, NewDirectiotu 
1 4ew Opportunities. 

•All TeANSfOIT TO S.'.MTtlMATIONAl AIIFOIT 

34*7, CALTMtN, 4Nb 7H0LLHS 30tN£bl 
Id San Francisco 



'Sleetrle 
fflunl Nstro 

hil'-fcOsl 
In 8.F. v* 



Si 

S 

o 




/ 



Market St^ 

8s rt to/from 
Daly City 

Muni Metro Ball 
extended In e 
boulevard to 
Caltraln. 
#Ul million 
to bth 8t 
(praaant 
terminal) 



y&rrbri*f$,\ 





stater 

Bart to 
\ Bast Bay 

water 



Channel 8t 




Travel Tltiee from/to 

IEmbareadaro S ta ti on t 
CI vie Canter 5 mi a., 
bth St.-* ain. , 7th 
St. 12 ain., 8. P. 
ef Airport 31 minutes, 
and #20 million to SF-ehosen now depot at 
7th ft Channel Sta. Fully SP funded, 
Fully approved, including by California 
Tranaportetlon Comaioslon with anthualaaw. 
Sarrloa operation target date: 1992. 



•CAL TRAIN AIRPORT STATION NOW? 

A little house. 24-hours lifted, 
no cars perking— only airport shuttle- 
buses frequently connecting over 
101 



Save csrpartlng fees, fines. 



■s» 

tU»IMMf 

#1,000,000,000 



Average velocities t 
Bart - 32 mph 
Cal train -40 mph* 



CLEAN AIR TRANSPORT SYSTEMS 

Spedaliala in Transportation and Air Status Solutions 

Dr. Nancy Jewell Cross, Chief Eiecutive Officer 

(415)854-6882 : 801 Vine Street 

Via/to • MenloPark, California 94025 



Can be operational In e few 
months without federal/state funds 

new local taxes. €00111,000,000, 
estimated 

for ofr quality, transport efficiency, 
popularity, economy, ond 
fiscal practicality. 
Well-informed people ore saying: 




Priority Oejg 



=*>c 



3«C 



tm ww "" ss ""* ' 



l3ll ° ^SAN FRANCISCO 
AIRPORTS COMMISSION 




■ — 

SEP 1 1 1990 



MINUTES 



<z 



JULY 3, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsidtnt 

DR. Z. L. GOOSBY 

Vict Prtsidtnt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

July 3, 1990 



CALENDAR 
SECTION 


AGENDA 

ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 

NUMBER PAGE 



ADOPTION OF MINUTES: 

Regular meeting of June 5, 1990 90-0120 3 

DIRECTOR'S REPORTS: 

1. Distribution of Runway Recon- 
figuration Study Phase I 

Draft Report 3-4 

ITEMS INITIATED BY COMMISSIONERS: 
Replacement for Howard Friedmen 4 

PENDING LEGISLATION: 

2. Verbal Report on State and 
Local Legislation Being 
Monitored by Staff: 

So. African Divesture Ord. 5 

S.M. Cty. B/S TSM Plan 5 

SB 2259 6 

SB 1723 6 

SB 2405 6-7 

Off-Airport Rental Car Bill 7-8 



G. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS & MAINTENANCE: 

3. Authorization to Conduct Pre- 
Quallf ication Process - Airport 
Public Automobile Parking 
Facilities Operating Agreement 

4. Award of Contract No. 2239 
Taxiway 'R' Widening and 
Reconstruction Between Taxiways 
•S' and 'X' 

5. Award of Parking Garage Level 2 
Restriping - Contract 1680C-R 90-0121 



90-0123 


9 


90-0124 


9 


90-0125 


9 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

6. Approval of Exhibition Program 90-0122 

7. Rental Credit to Northwest 
Airlines, Inc. for Surface 
Sealing of Airport Aircraft 
Parking Spots 99/100 

8. Retirement Resolution: 
Luis F. Gomez 

9. Resolution Ratifying Personnel 
Actions 



PUBLIC HEARING: 

10. Hearing on Fiscal Year 1990/91 

Rates & Charges 9-10 



NEW BUSINESS: 10 

Retirement Resolutions: 

Doug Martin 90-0126 

Nick Rocco 90-0127 

Cliff Wichmann 90-0128 

Enrique Serrano 90-0129 

Harry Forrest 90-0130 

Marcel lo Bruce 90-0131 10 



CORRESPONDENCE: 

Background on BART 10 

ADJOURNMENT: 10 



Minutes, July 3. 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

July 3, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Sharon B. Duval 1 
Patrick A. Murphy 

Absent: Donald R. Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of June 5, 1990 were adopted by order 
of the Commission President. 

No. 90-0120 



D. DIRECTOR'S REPORTS: 

1 . The Distribution of Runway Reconfiguration Study Phase I Draft Report 

Commission's concurrence to distribute 
copies of Draft Report for Runway 
Reconfiguration Study, Phase I, to 
Interested parties. 

Mr. Lou Turpen, Airport Director, said that the Commission authorized 
the Airport to engage a consultant to take a look at the runway 
configuration at the Airport with a view toward whether or not any 
modification of that configuration could reduce the noise impact in 
the 65CNEL to zero. Greiner was ultimately hired. He said that if 
there was a runway configuration that could do that then the 
Commission could look beyond the first portion of the study to the 
possible environmental consequences, costs and other impacts of 
selected runway relocation. He said that the Greiner report was 
provided to the staff about five days ago. It is staff's intention 
to informally ask the Commission's permission to share it with the 
Airport Community Roundtable and other groups as staff begins to 

Minutes, July 3, 1990, Page 3 



evaluate the report's content. He said that the objective is either 
to ratify some of the opportunities that appear to be in the report 
or to reject them and return to the Commission within 60 days with a 
more definitive evaluation of what this report says and his 
recommendation. 

Mr. Turpen explained that this report offers the data necessary to 
evaluate each alternative with a view toward continuing or abandoning 
the report. He said that of the 26 studies that were done, four of 
them suggest a 0/65 CNEL Impact. He would like to take a look at the 
zero impact alternatives to determine if they are as attractive as 
they appear initially. He would also like to take a look at some 
alternatives that may not be zero Impact with a view toward possibly 
insulating a small number of homes. He said that it is possible that 
environmental and cost concerns might be such that a zero impact 
alternative wouldn't be possible. 

Commissioner Duvall hoped that the Airport had a plan for presenting 
the report to the media to ensure an accurate presentation in the 
press rather than allowing the opportunity for it to be 
mi sinterpreted. 

Mr. Turpen said that typically staff would share with the media the 
Airport's intention and program. He was certain that when the 
Airport meets with the Roundtable 1n about a month it will receive 
attention there as well. This report provides a data base to 
determine whether or not staff should move forward to the next stage. 
He said that he did not intend to call a press conference at this 
point because he did not anticipate much interest at this early 
stage. He felt that calling a press conference at this point would 
create an impression which just isn't there. 

Commissioner Duvall agreed with Mr. Turpen but felt a press release 
might be in order. 

Mr. Turpen agreed. 

Commissioner Duvall said that this is an opportunity to bring about a 
positive modification to the runway system as well as to the overall 
noise situation but very often these opportunities are thwarted in 
the early stages because of misunderstandings and alternative agendas. 

Commissioner Goosby asked if a timetable had been established. 

Mr. Turpen responded that a Roundtable meeting has been set up for 
August 1 and will serve as a forum for local communities to discuss 
this with the Airport 1n a workshop setting. Staff should return to 
the Commission with reactions from the workshop in early August. He 
thought that staff should have some final thoughts on this first 
phase prepared for the Commission by September. 

Mr. Turpen announced that the Roundtable workshop will be held In the 
North Terminal VIP Room at 7:30 PM on Wednesday, August 1. 



E. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby asked that an item be calendared to discuss Howard 
Friedman's replacement. 

Mr. Turpen said that the item will be placed on the next calendar 
Minutes, July 3, 1990, Page 4 



PENDING LEGISLATION: 

2. Verbal Report on State and Local Legislation Being Monitored by Staff 

Mr. Peter Nardoza, Assistant Deputy Director, Business and Finance, 
explained to the Commission that currently the City does not contract 
with any company that has ties with South Africa in accordance with 
the City's South Africa Di vesture Ordinance. The Board of 
Supervisors is now considering an amendment to include leases and 
permits. He did not know how that would effect our airline and 
concession leases or our leases for gasoline. 

Mr. Nardoza said that this amendment Is currently in the 
Administration and Oversight Committee. A hearing was held last week 
and the item was continued. The amendment, as it is currently 
written, has language that speaks to Federal preemption which may 
cover our airline leases. He said that 1t also speaks to fiduciary 
responsibility but it is still very unclear what that might do to a 
Marriott/Host lease. He said that he did not know if Marriott has a 
hotel in South Africa. 

Mr. Turpen added that the amendment also covers businesses that do 

business with companies having ties with South Africa. He said that 

this ordinance will now flow to the revenue stream whereas previously 
it was expense oriented. 

Commissioner Duval 1 asked who authored the amendment. 

Mr. Nardoza responded Supervisors Kennedy and Ward. 

Mr. Nardoza explained that the San Mateo County Board of Supervisors 
adopted their county-wide transportation plan that this Commission 
opposed by resolution at Its last meeting. The Supervisors were very 
strong in their support of the past efforts made by the Airports 
Commission. They indicated to their staff that they were to work 
very closely with the Airport to learn from its staff how to go about 
this. They did not adopt the ordinance which Includes the $5.00 per 
head fee nor will the Airport be required to file a plan at this 
point. Further, on the advice of the Supervisor's legal counsel the 
ordinance was put over so that it could be rewritten to meet the 
Airport's concerns. 

Mr. Don Garibaldi, Airports General Counsel, added that the County 
Council still has not determined whether they can make that ordinance 
applicable to San Francisco. 

Mr. Nardoza told the Commission that the State legislators are very 
angry with the cost of airfare 1n California. It 1s $456 to fly 
round trip LAX/Sacramento. They are also very concerned with the 
level of service, vis a vis flights being cancelled, etc. When the 
hearing started yesterday, Assemblywoman Gwen Moore, the Majority 
Whip, indicated that due to Federal preemption they can't get at the 
airlines directly so they will go through the airports. Comments 
such as, "You, the airports, can take away their gates." "You, the 
airports, have so much money that you can create programs and hire 
people to monitor what the airlines are doing and report to the 
legislators. In turn they will figure out a way of how to deal with 
the airlines." 



Minute*. July 3, 1990. Page 5 



Mr. Nardoza said that there were two bills up yesterday by Senator 
Roberti, Predident Pro Tern of the Senate. Senate Bill 2259 speaks to 
gate discrimination and \\ would ban an airport from discriminating 
in the allocation of gate space. As we understand it it would not 
effect our present Lease and Use Agreement but that question is up in 
the air. He said that Senator Roberti is looking at Los Angeles 
which is now renegotiating most of its airline leases. LAX is 
looking towards wore of a common use program whereby the airport 
could control who gets to use what gates at what times of day. He 
said that there was no quorum when this Item was heard so it is still 
pending in Committee. 

Commissioner Murphy asked what was meant by discrimination. 

Mr. Nardoza said that Southwest Airlines was present yesterday and 
they support the bill. He said that the discussion was that if 
Southwest can fly from Burbank to Oakland for $69 each way, why can't 
Southwest fly LAX/SFO for $69? Southwest responded that they don't 
have the gate space at those two major airports but they do have gate 
space at the two smaller airports, which allows them to fly cheaply. 

Mr. Turpen said that the issue is that they don't have control of the 
gates so they must sublease from another airline. The suggestion 
being that because they have to sublease they have to pay fees which 
are higher than they would normally pay to the authority so their 
costs increase. He said that the gate may be passed on at the 15 
percent cap set by the Commission but the handling fee is agreed to 
by the two airlines involved and the Airport has no Involvement. 

Commissioner Duval 1 said that there is some substance to the agrument 
of full access to gates alleviating the situation. 

Mr. Turpen said that he is completely in favor of common use gates. 

Mr. Nardoza said that at this point the Lease and Use Agreement will 
remain in tack. 

Ms. Angela Gittens, Deputy Director, Business & Finance, said that 
the issue is that LAX has 100 long term leases expiring and an 
attempt is being made to try to prevent them from entering new long 
term leases. 



Mr. Nardoza said that last year staff was before the Commission 
regarding Senator Robertl's bill, SB 1723. This bill speaks to 
consumer affairs. The Senator wants to create within the State PUC 
an office of Airline Consumer Affairs. The Airport had no problem 
with that until Friday when the Senator issued amendments which would 
require airports to pay for 1t. Airports would be required to send 
money to the State PUC to administer the program. Airports would 
create and staff a 24-hour-a-day office to receive complaints from 
airline consumers. Both he and the LAX representative spoke against 
this round of amendments. The Senator's office indicated that they 
would work with him and the LAX rep during the summer recess to see 
what could be worked out. He added that Assemblywoman Gwen Moore 
again said that since airports have so much money it would be no 
problem for them to support this type of program. 



Mr. Nardoza said that Senator Kopp has SB 2405 which would require 
post 1991 construction and/or sale of any property within a noise 
impacted area to have notification in that sale that the area is 
noise impacted. He said that Senator Kopp is carrying the 
legislation for a developer. 



Minutes, July 3, 1990, Page 6 



Mr. Turpen explained that this goes back to Shearwater. Several 
years ago the Airport litigated with a developer in South San 
Francisco regarding putting housing under SFOs shoreline departure 
where currently there is no residential use. As a result of that 
litigation homes were not built in that area. Now, it seems that a 
new developer wishes to construct homes. One of the ways the 
developer can achieve his objective is to have legislation requiring 
an avigation easement for the Airport to protect it from liability as 
well as a provision to notify Individuals buying the property to 
ensure that they are fully cognizant of the Airport's presence. 

Mr. Turpen said that Senator Kopp's bill has raised serious concerns 
on the Peninsula. Many of the noise affected communities feel that a 
new constituency north of the Airport would create not so much a 
legal Influence but a political influence on the Airport to start 
shifting flights, thus impacting their respective communities. They 
are particularly concerned about the bill from the standpoint of 
further residential development where there is presently none. He 
has met with key people on the Peninsula as well as with Senator 
Kopp's staff In an attempt to work something out. He felt that a 
generic bill is attractive and any insulation that the Airport can 
receive from litigation is desirable. The Airport is presently 
insulated under PART 150 of Federal regulations which says that 
anyone moving in after a date certain is deemed to have constructive 
knowledge of noise nuisance and is therefore foreclosed from 
litigating. He said that this bill 1s almost a duplicate of that 
type of language and goes further with some type of notice 
requirement. He said that they are still talking about it and it is 
still pending. 

Commissioner Goosby asked if the State had enacted a similar piece of 
legislation several years ago. 

Mr. Turpen responded that the State tried to enact something about 
four years ago but it was vetoed by Governor Deukmejian. He said 
that he would support any legislation declaring that anyone who moves 
within a certain radius of the Airport to have constructive knowledge 
of the nuisance. Further, he would support a notification 
requirement within that bill requiring the homeowner to provide 
written acknowlegment of the presence of the Airport. 

Commissioner Duval 1 asked if the lands subject to development were 
currently prohibited from residential development by statute. 

Mr. Turpen responded that they were not. He said that It would 
appear that the area under consideration 1s outside the 65 CNEL noise 
impact boundary which would make 1t legal for residential development 
under the county plan. However, It 1s an area over which aircraft 
would fly. He said that there would be much single-event noise 
impacting and today our larger problem 1s the single event issue 
which Is not recognized by State law. He said that Foster City, for 
example, 1s not Impacted by 65 CNEL and yet the single event of an 
arrival, which is far less noise generating than a departure, has 
given rise to a very significant constituency in Foster City. 

Mr. Turpen said that the bill's Intent was an effort to blend a 
couple of very difficult positions ... the Airport's position of no 
more housing in the vicinity of the Airport, and, the position of the 
community which says that more housing is needed. 

Mr. Turpen said that he will continue to keep the Commission advised. 



Mr. Nardoza said that the off-Airport rent a car bill is alive and 
well and has been completely rewritten by Assemblyman Costa. It now 

Minutes, July 3, 1990. Page 7 



says that when an Airport leases to a rent a car company on airport 
it needs to hold a public hearing and it needs to issue findings of 
fact. It is our assumption as well as the assumption of all other 
airports, that those findings of fact could then be used for a 
lawsuit. He said that the findings of fact would speak to why the 
Airport only let five leases rather than 10 leases, for example. 
This bill will be heard next Thursday before the Senate Local 
Government Committee and the Airport will oppose it. 

Commissioner Murphy asked if it were true that Alamo 1s planning to 
come into the Airport. 

Mr. Turpen responded that Alamo has just petitioned to go to Oakland, 



Mr. Nardoza said that our bill which would make It a misdemeanor to 
go onto the airfield is sailing right through and should be approved 
sometime in August. Assemblywoman Spear is carrying this bill. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 3 was removed from the calendar. 

3. Authorization to Conduct Pre-Qual if ication Process 

Airport Public Automobile Parking Facilities Operating Agreement 



Resolution authorizing Director to 
conduct the pre-qual if ication process 
for the Airport Public Automobile 
Parking Facilities Operating Agreement 



The following item was put over. 

4. Award of Airport Contract No. 2239 Taxiway 'R' 

Widening and Reconstruction Between Taxiways 'S' and 'X' 

Resolution awarding Contract No. 2239 
to F1sk, Flrenze and McLean, Inc. in 
the amount of $460,139.50. 



Item No. 5 was adopted unanimously. 

5. Award of Parking Garage Level 2 Restrlplnq 
Contract 1680C-R 

No. 90-0121 Resolution to award Contract 1680C-R 

to the low bidder, RPA Construction 
Co. Contract price is $91,327.00. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following Items were adopted unanimously. 

Minutes, July 3, 1990, Page 8 



6. Approval of Exhibition Program 

No. 90-0122 Proposed Exhibition Schedule for the 

San Francisco International Airport 
Exhibitions Programs, July 1, 1990 to 
December 1991 . 

Commissioner Goosby assumed that according to this information there 
was no space available for additional exhibitions at the Airport. He 
noted that there is a good deal of ethnic art represented in the 
schedule. 

Mr. Turpen explained that long term schedules are established as it 
takes a while to receive commitments for exhibitions, deal with 
insurance issues and schedule the exhibits Into appropriate available 
space according to the timeframes of exhibit owners. He said that 
very often people approach the Exhibition Department wanting to plan 
an exhibit but because the exhibition schedule is planned a year or 
more in advance these people are placed on lists. 



7. Rental Credit to Northwest Airlines, Inc. for Surface Sealing of 
Airport Aircraft Parking Spots 99/100 

No. 90-0123 



8. Retirement Resolution : 
Luis F. Gomez 

No. 90-0124 Adoption of proposed Retirement 

Resolution for Luis F. Gomez, SF0 
Federal Aviation Administration Civil 
Aviation Security Field Office. 



9. Resolution Ratifying Personnel Actions 

No. 90-0125 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



I. PUBLIC HEARING: 

The public hearing was called at 9:38 AM and adjourned at 9:40 AM, there 
being no comments from the public. 

10. Hearing on Fiscal Year 1990/91 Rates & Charges 

Hearing concerning the Proposed 
Terminal Rental Rates and Landing Fee 
Rates for Fiscal Year 1990/91. 

Commissioner Goosby asked Mr. Turpen if the airlines had any 
reservations about these rates and charges. 

Ms. Gittens responded that the one reservation they expressed In a 

Minutes. July 3, 1990. Page 9 



letter to the Commission is that as the Airport moves forward with 
the kind of indebtedness we plan to undertake over the next several 
years that we hold the line on operational spending. They had no 
problem with the current year. 



J. NEW BUSINESS: 

Unanimous adoption of the following retirement resolutions 



No. 
No. 
No. 
No. 
No. 
No. 



90-0126 
90-0127 
90-0128 
90-0129 
90-0130 
90-0131 



Doug Martin 
Nick Rocco 
Cliff Wichmann 
Enrique Serrano 
Harry Forrest 
Marcel lo Bruce 



* * * 



K. CORRESPONDENCE: 

Mr. Turpen offered a short chronology on the background on BART. 



* * * 



L. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:45 AM to go into closed session. 




fajiStu 



ean Caramatti 
commission Secretary 



Minutes, JVy 3, 1990, Page 10 



PABTEYTENKIfWTOBFIA 
chronology of actions 



1972 



Airport* Commission approves a change order to the North Terminal, 
Boarding Area F and garage construction contract* to provide a BART 
Efbt-of-wsy to tie center of the garage. Construction piles are 
nhetttd to provide unobstructed ipace. The right-of-way is not 
excavated and does not extend aity further than the indicated facilities. 
(Exhibit A) 



10/1/75 - Sac Francisco Boaid of Supervisors, by Resolution No. 722-75, urges 
and recommends that the BART District Board of Directors adopt ss 
its first priority, sew construction to extend BART to the San Francisco 
International Airport (no specific alignment mentioned). (Exhibit B) 

12/20/83 • Airporu Commission, by Resolution No. 83-0339, endorses the concept 
of a BART extension to SFIA and urges MTC to study alternative 
alignments of BART at and near the Airport and alternative means of 
accessing the terminals from an Airport BART Station. The memo to 
Commission describes the MTC new rail starts/extensions and 
specifically the BART Airport extension - recommends that the 
Airports Commission staff testify at the January 12, 1983 MTC public 
bearing to support the BART extension to SFIA (Exhibit C) 

2/10/84 Letter to Supervisor Wendy Nelder from William Coblentz, Vice 

President Airports Commission, urging the Board of Supervisors to 
continue support of the BART extension to San Fraud wo Airport Is 
lieu of supporting the San Francisco Transportation and Traffic 
Committee's recommendation to delete support of BART in favor of 
the Southern Pacific line to the Trans Bay Terminal. (Exhibit D) 

2/14/84 - San Francisco Board of Supervisors, by Resolution No. 124-84, 
recommends inclusion of a BART extension to or near San Francisco 
International Airport, predicated on equitable participation by San 
Mateo County for such a station, and requests that the resolution be 
transmitted to the Mayor and the Metropolitan Transportation 
Commission. (Exhibit E) 

3/13/85 - Staff memo to Commission describes the status of the Peninsula Mass 
Transit Study. The study evaluated eight alternative transit options to 
serve the Peninsula as far south as San Jose. BART alternatives to 
SFIA included internal (garage) and external alignments (West of 
Bayshore, Millbrae Station). (Exhibit F) 

1/11/68 - Staff memo to Commission describes the historical and future plans 

for a BART extension to the San Francisco International Airport It 
indicates MTC preference for a West of Bayshore BART Station. 
(Exhibit C) 



2/8/% 



MTC Policy Committee meets to review Phase I of the BART San 
Francisco Airport Extension Alternative Analysis/Draft Environmental 
Impact Study. The study, funded by the Urban Maw Transportation 
Administration, Is to determine the technical and financial feasibility 
of various alternatives. The Policy Committee unanimously voted to 
continue studying and pursue UMTA funding of only the external 
BART extension to San Francisco International Airport (West of 
Bayshore Station). (Exhibit H) 



2/26/90 • Letter to Brian Oymer, Administrator of the Urban Mass 

7Vanspartjrtkn Administration, from Lawrence Dabms, Executive 
Director of MTC, re*pe*un* author mo on to proceed with Phase II 
of the Ahematiuc Aualvsis T>EJS spccificciiy, anah/ring the external 
alignment of BART id aero San Francisco international Airport. 
(Exhibit I) 



5/9/90 



California Transportation Commission Hearings; MTC, BART and 
SFIA give tesu'mony recommending BART serve San Frandsco 
International Airport and analysis supporting an external BART station. 
(Exhibit J) 



6/11/90 - UMTA authorizes and MTC proceeds with Pbtse II of the Alternative 
Analysis/DEIS for a BART extension ( external alignment • West of 
Bayshore) to the Airport. (Source - MTC) 



to 



/SAN FRANCISCO 
AIRPORTS COMMISSION 




■^ 



MINUTES 



DOCUMENT? " 

SEP 12 1930 

NFRANCJSw 
PUBLIC LIBRARX 



AUGUST 7, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsidtnt 

DR. Z. L. GOOSBY 

Vict President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commi ssion 

August 7, 1990 

CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. CLOSED SESSION: 

1 . SFO Airporter vs CCSF 3 

D. DIRECTOR'S REPORTS: 

2. Report on Lease Option Policy 3 

3. SBE Business Consulting 

Services 3-4 

E. ITEMS INITIATED BY COMMISSIONERS: 

4. Retaining a Coordinating Architect 

for the Master Plan 4-5 

F. POLICY: 

5. Revisions to Policy on Bid 
Deposits and Performance 

Guarantees 5 



G. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS & MAINTENANCE: 

6. Self-Service Luggage Cart 

Agreement 90-01 32 6-7 

7. Airport Public Automobile 
Parking Facilities Operating 
Agreement - Authorization to 
Conduct Pre-Qual if ication 

Process 7-12 

8. Authorization to Conduct Pre-Bid 
Conference for a Limousine 

Service Operating Agreement 12 

9. Authorization to Conduct a Pre-Bid 
Conference for One Additional 

Automobile Rental Operator 90-0133 12 

10. Authorization to Accept Bids for 
the South Terminal Cigarette 
Vending Lease 90-0134 12 



11. Authorization to Receive Bids for 
and Hold Over the Lease of North 

Terminal Crab and Seafood Lease 90-0135 13-14 

12. Award of Geotechnical Engineering 
Services Contract to Trans 

Pacific/Dames & Moore 90-0136 14 

13. Award of Professional Service 
Contract - Sequoia Analytical 

Laboratory 90-0137 15 

14. Award of North Terminal Candy 
Store Lease to ABC Cigar 

Company 90-0138 15 

15. Adoption of Fiscal Year 1990/91 

Rates and Charges 90-0139 15 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

16. Retirement Resolution: 

Pan Am Pilot William G. Frisbie 90-0140 15 

17. Retirement Resolution: 

CI iff Wichmann 15 

18. Resolution to Contract for 
Peace Officer Physical Abilities 

and Medical Standards Study 90-0141 15 

19. Award of Contract No. 2239 
Taxiway 'R' Widening and 
Reconstruction Between Taxiways 

'S' and 'X' 90-0142 16 

20. Bid Call - Contract No. 2331 - 

Silt Removal - 1990 90-0143 16 

21. Design Approval - North Terminal 
Boarding Area ' F ' - Hub Shoeshine 
Stand 

22. Resolution Ratifying Personnel 
Actions 

23. Travel /Training for Fiscal 
Year 1990/91 



I. NEW BUSINESS: 16 

J. CORRESPONDENCE: 16 

K. CLOSED SESSION: 

24. Employee Discipline 16 

L. ADJOURNMENT: 17 

Minutes August 7, 1990, Page 2 



90-0144 


16 


90-0145 


16 


90-0146 


16 



Mi nutes 

of the 

Airports Commission Meeting 

August 7, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Sharon B. Duval 1 

Absent: Patrick A. Murphy 



CLOSED SESSION: 

The meeting recessed at 9:02 AM to discuss the following item in closed 
session and reconvened at 9:18 AM. 

1 . SFO Airporter, Inc. vs CCSF et al , San Francisco Superior Court No. 
873939 



D. DIRECTOR'S REPORTS: 

Item No. 2 was put over to the August 21, 1990 meeting without discussion. 

2. Report on Lease Option Policy 

3. SBE Business Consulting Services 

Report on SBE consulting services and 
programs currently available at San 
Francisco International Airport. 

Mr. Lou Turpen, Airport Director, said that the Commission asked 
staff to look into this. There are several alternatives available to 
the Commission. The first is to have Airport staff provide the 
service. The second would be to hire a consultant. The third would 
be to do nothing and have Sandra Crumpler, the Airport's Outreach 
Officer, act as a clearinghouse for businesses who need these 

Minutes. August 7, 1990, Page 3 



services. It would be Ms. Crumpler's responsibility to put these 
businesses in touch with organizations that provide these services. 
It seems to be working quite well. He felt that the Airport should 
not be involved for obvious reasons of liability. The Airport would 
not want to be placed in the position of providing services to a 
business only to have that business fail. 

Commissioner Goosby said that the businesses he has spoken with do 
not seem to be interested in this service. 

Mr. Turpen recommended the third alternative and said that Sandra 
Crumpler will maintain a log of inquiries she receives from 
businesses for a period of six months. After that time staff will 
return to the Commission. 



E. ITEMS INITIATED BY COMMISSIONERS: 

4. Retaining a Coordinating Architect for the Master Plan 

Mr. Turpen said that Howard Friedman served as the coordinating 
architect for the South Terminal. He did a wonderful job of 
coordinating and balancing affirmative action in this project. Mr. 
Friedman was respected in his field and everyone recognized his 
ability to insulate staff as well as communicate a sense of fairness 
within the architectural community. 

Mr. Harry Overstreet, President of the National Organization of 
Minority Architects, said that there were a number of members of that 
organization present but he would be the only member to speak. 

Mr. Overstreet praised Mr. Friedman for the system he established. 
He said that Howard Friedman had a unique set of attributes ... one 
of them was that he was an academic. He kept up not only with 
architectural trends, but he also kept up to date and had a working 
knowledge of the development of firms, their personnel and the styles 
within those firms. That is something no other architectural firm 
would have access to. Other firms could not spend the time nor would 
they have the incliniation to keep up with what is happening in other 
f i rms . 

Mr. Overstreet said that he felt that should take over this 
responsibility. He said that he knows who Jason Yuen's boss is if he 
ever had a problem with him. That would not be the case. if the 
Airport hired an architectural firm to replace Howard Friedman. Mr. 
Overstreet said that they trust the Airport staff. 

Commissioner Goosby said that Howard Friedman paved the way and 
developed this process. His services were invaluable to the 
Airport. He understood the Commission's needs and its desire for 
broader minority participation. He said that Howard's integrity was 
impeccable and unquestioned and we won't find anyone like him again. 

Commissioner Goosby agreed with Mr. Overstreet and felt that staff 
should take on this responsibility. 

Commissioner Bernstein praised Mr. Friedman's accomplishments and 
said that his friendship with the Commission will be missed. He 
agreed that the Airport will never find anyone like him again. He 
also agreed that seeking a replacement from an architectural firm 
would not work. He suggested looking into the possibility of hiring 
a professor from either Berkeley or Stanford. 

Minutes, August 7, 1990, Page 4 



Commissioner Goosby suggested that staff come up with a process for 
selecting architects. It will be this process that will define how 
wel 1 we do. 

Mr. Turpen said that staff will develop a process for the selection 
of a Master Plan architect for presentation to the Commission. 



F. POLICY: 

Item No. 5 was put over to the first meeting in September. 

5. Revisions to Policy on Bid Deposits anc Performance Guarantees 

Commissioner Stephens felt that if a bidder was able to get one of 
these instruments then he or she should have no trouble in getting 
any other. He felt that any financial institution, certainly his 
bank, would not give a certified check or cashiers check to any small 
business without available funds. If the small business had the 
funds and wanted a letter of credit against it, the Airport should 
take the most protective position and take the letter of credit. 

Ms. Gittens said that she had no objection but was merely reacting to 
what they have been told by the small business tenants. 

Commissioner Stephens suggested that they tentatively ask for the 
letter of credit and let the bidder tell the Airport why it is more 
difficult to get a letter of credit then a cashiers check. He said 
he would be interested in hearing it. 

Commissioner Duval 1 wondered if the small business response has been 
from actual experience or from some sort of projected or expected 
experience. 

Ms. Gittens said that she would ask that specific question. 

Commissioner Duvall said that if the small business comes back with 
specific bank experiences that tell us that a letter of credit really 
is an undue economic burden, that is what we would be concerned with. 

Commissioner Stephens said that the question is, if small businesses 
have $50,000 for cashiers checks why can't they get letters of credit. 

Commissioner Duvall assumed that from the banks point of view they 
are all equally collateralized. 

Mr. Turpen said that this item would be put over until the first 
meeting in September to give staff the time to conduct the required 
survey and return to the Commission. He said that everything would 
remain at the status quo. 

Commissioner Stephens said that it was the feeling of the Commission 
that letters of credit and surety bonds are the same, but they are 
certainly willing to listen to any comments that small businesses 
might offer as to why it's harder to get a letter of credit than it 
is to get a cashiers check. 



Minutes, August 7. 1990, Page 5 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

6. Self-Service Luggage Cart Agreement 

No. 90-0132 Resolution rescinding the previous 

award, extending the current 
agreement, and authorizing the 
Director of Airports to accept 
proposals for a five-year agreement. 

Mr. Turpen said that this item rescinds the previous award, extends 
the current operating agreement to ensure continuity of service at an 
amended rate for free carts in Customs, and authorizes staff to 
accept proposals on a new luggage cart agreement. 

Commissioner Stephens assumed that the Airport would not be taking on 
any additional liability by rescinding this bid as the court deemed 
that we have handled it improperly. 

Mr. Don Garibaldi, Airports General Counsel, said that we don't have 
a specific decision yet but the court has made it clear that we must 
rescind the old contract. 

Commissioner Goosby asked why it's being handled as a proposal. 

Mr. Turpen responded that this is a service type of activity. 

Commissioner Goosby said that the garage was bid and that is a 
service. 

Mr. Turpen responded that the garage is done by bid but it is a 
two-phase project. The first phase is a pre-qual if ication process, 
the second is to request a bid amount. 

Mr. Turpen explained that this bid is unique. The free carts in 
Customs cost the Airport about $1 -mi 1 1 i on a year. We were seeking 
proposals to provide a pay cart system in the domestic area as well 
as a free cart system to passengers in the international area. 
Finally, we are looking for a way to mitigate against that cost 
rather than trying to bid a complicated dual system. He said that 
this is not an area which is repleat with bidders. Essentially there 
is one firm in the United States and one or two outside of the United 
States ... probably a maximum of 10 or 12 companies will bid. 

Commissioner Goosby asked if we were bound by the same Charter 
regulations that govern bidding concessions. 

Mr. Turpen responded that we are not. 

Commissioner Goosby assumed that there were no legal grounds for 
accepting the lowest bidder. 

Mr. Don Garibaldi, Airports General Counsel, said not as long as the 
Airport makes a determination based on an evaluation of the 
proposals. There must be a reasonable basis for the decision. The 
courts would sustain such a determination. 

Mr. Turpen said that there are a number of wild cards in this 
scenario. Because of the free cart issue it is not a simple matter 
of providing carts to the Airport. 

Commissioner Goosby said that the Commission has dealt with bids and 
people trust the bidding process and feel it is fair. He gets 
nervous when the Airport departs from that process and fears that it 
wi 1 1 become a practice . 

Minutes, August 7, 1990, Page 6 



Mr. Garibaldi responded that concessions must be bid. 

Mr. Turpen said that the situation that applies here is not one which 
applies in the traditional retail concession area. We would not go 
for an RFP in a retail concession because we are prevented legally 
from doing so. The free cart component puts a slightly different 
spin on the issue and has created some opportunities for ingenuity on 
the part of the private sector. He would like to see what type of 
ingenuity they can bring to this issue. 



Item No. 7 was put over. 

7. Airport Public Automobile Parking Facilities Operating Agreement 
Authorization to Conduct Pre-Qual if ication Process 

Resolution authorizing staff to 
conduct the pre-qual if ication process 
for the Airport Public Automobile 
Parking Facilities Operating Agreement. 

Mr. Turpen said that this begins a two-part process for the central 
parking garage. It deals with the pre-qual if ication of companies to 
ensure that they are capable of operating a facility such as ours. 
At the conclusion of that process we request bids. This is the same 
process used in 1980 and 1985. 

Commissioner Duval 1 asked how many potential candidates we are left 
with at the end of the pre-qual if ication process. 

Ms. Gittens responded that although he did not know that much about 
the 12 companies that attended the conference, he assumed that six or 
seven will be left. He said that the issue of the five mile limit 
would eliminate four of the potential bidders. This specification 
says that no company with a public parking garage within five miles 
of the Airport can bid on this agreement. This was an issue in 1985. 
The Commission chose to remove the specification the last time in 
order to encourage more bidding. Staff recommends that the 
specification be included. She believed the Commission would hear 
commentary from speakers requesting the removal of the specification. 

Commissioner Stephens asked for an explanation of the theory behind 
the five mi le limit. 

Ms. Gittens responded that the theory was that since the Airport pays 
all of the operating costs, that another competing operation closely 
situated to the Airport would provide the opportunity for" staff 
sharing between the two facilities. This could result in the Airport 
picking up costs for services it is not receiving. It would also 
catapult the Airport into an extraordinary auditing/watchdog process. 

Commissioner Stephens asked if the operator would pay us a certain 
amount per car. 

Ms. Gittens responded that the Airport pays a management fee ... that 
is the bid item. The expenses are set annually by budget process. 

Commissioner Goosby assumed that the Airport does not want the 
operator to use its other employees to work at the Airport and vice 
versa. 

Ms. Gittens said that that was correct. 



Minutes Augus f 7, 1990, Page 7 



Commissioner Stephens understood that the Airport paid the operator a 
certain amount per year to manage the garage and we pay the employees 
work for them. 

Commissioner Duval 1 asked for an explanation of the rationale for the 
five mi le limit. 

Commissioner Stephens assumed that that distance would make it 
difficult to move employees around. If the operator had a parking 
facility only two miles down the road it would be a simple matter to 
have an employee working there but listed on the payroll here. 

Commissioner Duvall still did not understand the five mile barrier. 

Mr. Turpen said that he did not believe that the five mile limit was 
ever actually set, it just seemed to be a reasonable distance. 

Commissioner Stephens asked if we were limited to accepting the 
lowest bidder. 

Ms. Gittens responded that the contract will be awarded to the lowest 
bidder. 

Commissioner Stephens asked if we were legally bound to do it that 
way. 

Mr. Garibaldi responded that we are not, but it proved successful the 
last two times it was bid. 

Ms. Gittens added that we could legally set up another process but 
the low-bid process was before the Commission. 

Commissioner Goosby asked what other processes could be used. 

Mr. Garibaldi responded we could use an RFP but staff is not 
recommending it. 

Commissioner Goosby said that anytime the Airport wants to get around 
a bidding process they can set up another process. 

Mr. Garibaldi responded that that is not true. The Charter is very 
clean when dealing with concessions ... they must be competitively 
bid and awarded to the highest bidder. 

Commissioner Goosby felt that the garage was a lucrative concession. 

Mr. Garibaldi said that the garage is operated as a management 
concession, not a lease. 

Mr. Turpen said that he strongly recommended repeating the last two 
efforts. The pre-qual if ication process ensures that the applicant 
pool is qualified and removes any subjectivity from that qualified 
pool in terms of what goes on. The Commission should have a high 
degree of confidence in a pre-qual if ied bidders ability to perform. 

Commissioner Goosby said that this is such a lucrative contract that 
handling it any other way puts everyone at a disadvantage and a 
tremendous amount of pressure mounts. He said that if the contract 
is bid and the low bidder receives the bid, politics does not come 
into play. He felt the bidding process protects the agency. 

Commissioner Duvall said that it was her impression that the nature 
of the contract being let is a management services contract with an 
element allowed for profit and overhead. She assumed that that is 



Minutes. August 7, 1990, Page 8 



the only element allowed in that management service bid that would be 
other than a direct recovery of expenses. 

Ms. Gittens said that the Airport is bidding a management fee. The 
bidder tells us how much we have to pay them to manage the garage. 

Commissioner Duval 1 asked if this was the fee that was somewhere 
under $20,000. 

Ms. Gittens responded that that was correct. 

Commissioner Duvall asked if this was the lucrative contract being 
di scussed. 

Commissioner Goosby said that it is lucrative for the Airport but 
there are all kinds of ways to make money. 

Commissioner Stephens asked if the fee was $20,000 a month. 

Ms. Gittens responded that the current management fee comes to 
$20,000 a year. 

Commissioner Stephens asked what else they were making if they were 
bidding $20,000 a year on a management contract that makes 
$30-million. He said it doesn't sound right. 

Commissioner Duvall wanted more information. She said that the 
Commission is confused as to the elements of the contract. 

Mr. Turpen said that it is fairly straightforward. Whatever money is 
collected by the garage goes into the Airport fund. The Airport 
reimburses the operator for expenses plus the management fee. Last 
year the cost of operating the garage was rougly $6-mi 1 1 ion to 
$7-mi 1 1 i on which includes personnel and other attendant costs. 

Commissioner Duvall said that the regulataion says that those 
expenses must be incurred solely and directly at the garage. 

Mr. Turpen said that that is correct. 

Commissioner Stephens assumed that the only benefit the operator 
receives is the $20,000 fee. 

Commissioner Duvall asked if overhead allocation was allowed-. 

Mr. Turpen responded that he did not believe so. The garage operator 
presents a budget, staffing plan, cost, etc. and the Airport approves 
it and reimburses the operator. The Airport audits both financially 
and operationally against that plan. If the Airport wants cashiers 
added, those costs are factored in and audited against that revised 
number. He felt that from the operators perspective they are putting 
their people in place in the facility and all of their costs, i.e. 
salaries, fringes, union contacts, etc. are covered. They have 100 
percent recovery and the question is what increment above that 100 
percent and that is the bid item. 

Commissioner Stephens said that conceptually we are getting a company 
to run a business through which passes over $30-million in revenues 
and at the end of the year the amount that they get to put in their 
bank account for taking on the responsibility of a $30-million a year 
business is $20,000 plus their operating expenses. 

Mr. Turpen said that that is correct. 



Minutes, August 7, 1990, Page 9 



Commi ssioner Goosby said that the Airport had companies from all over 
the United States wanting to bid this contract and the bids were all 
very close together. 

Commissioner Bernstein asked if there were revenues on various items 
in which they participate such as repairs. 

Mr. Turpen responded that they do not. 

Commissioner Stephens asked if they received other benefits such as 
printing the garage tickets or towing cars and storing them for fees. 

Mr. Gittens responded that one of the major other benefits is on the 
credit card receipts. Those receipts are deposited once a week- in 
our account so they get three and a half days of interest on the cash 
from the credit card receipts. 

Commissioner Duvall asked what the credit card receipts amount to. 

Ms. Gittens responded that it is about 20 percent of the total. 

Mr. Turpen said that the Commission has t vo options ... option one is 
to do an RFP and option two is to bid. The firms will have to be 
pre-qual if ied regardless of the option. 

Commissioner Stephens asked why the Airport doesn't run the operation. 

Mr. Turpen responded that the Airport is required to do a yearly Prop 
J analysis and each time the analysis has proven that the City cannot 
operate the facility as cheaply as a private contractor. 

Commissioner Stephens suggested that that measurement assumes that in 
order to run the garage the City would have to use the same number of 
personnel the current manager uses. He said that if you compare the 
five garage attendants that they have at the salary they are paying 
versus our own five garage attendants it may come out to be more 
money. He asked if a study had ever been done to determine if we 
need the number of attendants used. He said that there may be other 
incentives to have other people on the payroll that we might not have 
if we ran i t oursel ves . 

Mr. Turpen responded that we basically run it ourselves. The 
management firm really is an agency for providing the bodies we 
specify. The Airport determines all manning levels, the times of 
opening and closing of lanes, the custodial schedules, etc. The 
Airport runs the operation, the firm provides the employees to manage 
it and they provide the on-site management of personnel. 

Commissioner Stephens said that he did not know of a business around 
that would be interested in managing a $30-mi 1 1 i on operation for 
$20,000 a year, including the Bank of San Francisco. 

Mr. Turpen said that he could name 12 interested businesses. 

Commissioner Duvall suggested going ahead and listening to the 
comments at the pre-qual if ication conference. It will provide 
important information from which to make a decision. In the mean 
time the Commission will consider it and return to staff with 
requests for additional information. She said that the Commission 
needs to understand the elements of the operating costs. 

Commissioner Bernstein asked Mr. George England if he wished to 
address the Commission. 



Minutes, August 7, 1990, Page 10 



Mr. George England, leased cab driver with Luxor Cab Company, said 
that he wanted to address the Commission about the public auto 
parking contract. He felt that any future contract agreement should 
include refinements to the present system. Those refinements will 
include a more efficient flow of taxis through the Airport parking 
lots and roadways vis a vis better coordination among the personnel 
whose jobs impact on taxi flow. Secondly, closed circuit TVs and 
monitors in staging areas and taxi stands so that starters, drivers, 
supervisors and the public can see where the taxis are and where they 
are needed. Compared to the cost of transponders for the shuttles, 
the closed circuit TV system is very minor. He said that under this 
agreement starters would actually be aiding the flow of taxis that 
seems to be the preference of the public. 

Commissioner Bernstein asked Mr. England how his comments related to 
the issue at hand. 

Mr. England responded that the garage is run by Airport Parking 
Management and one of their competitors operates that company. There 
are scheduled bottlenecks in the flow of cars through the cab lot. 
He said that there are times when cab drivers drop off upstairs and 
as they circle the roadway they see passengers standing around and 
there are no cabs in the stands. 

Commissioner Duvall explained that the Commission is considering the 
pre-qual if ication issue. She thought Mr. England's information was 
very interesting and she was glad to have it, however, she needed him 
to speak to the contract specifications as opposed to the pre-bid 
qualifications. She told him that at the appropriate time his 
remarks can be entered into the record on contract qualifications. 

Mr. Turpen said that that was correct. He said that Mr. England's 
concerns can be raised with Mr. Fein, manager of Landside 
Operations. They are operating issues and can be changed at any 
time. They are not part of the specifications perse. 

Commissioner Duvall said that it should be determined how to handle 
this information. She said that staff might want to give it a little 
more importance by having it included somehow into the overall 
specifications of the operating costs. 

Mr. Turpen said that if the Commission wants a follow-up the easiest 
way to handle it would be for Mr. England to communicate in writing 
to him with a copy to the Commission. Staff will address the issues 
and file a response with the Commission. The Commission can then 
raise specific issues on specific items in the event there are 
concerns about the response. 

Commissioner Duvall said that she would like the opportunity to 
consider it a little more. She asked Mr. England to present written 
comments to the Director and he will follow up on that information 
with the Commission. The Commission will then have the opportunity 
to consider whether or not it is possible to have it included in some 
sort of specification. She said that the Commission is not able to 
take any specific action today with regard to Mr. England's comments. 

Mr. England said that he wanted to bring this to the attention to the 
Commission. He said that he has made great effort to contact all 
members of Landside Operations. He said that they are often out and 
as he is a working cab driver it is difficult to reach him. He added 
that he does have a pager and he does respond to calls. 

Mr. England said that ideally he would like to see a closed circuit 
TV system that will modernize the way cabs flow through the Airport, 



Minutes, August 7, 1990, Page 11 



rather than a hit or miss coordination between personnel that seems 
to change on a daily basis. He felt that would go a long way to 
solving some of the problems. 



Item No. 8 was put over. 

8. Authorization to Conduct Pre-Bid Conference for a Limousine Service 
Operating Agreement 

Recommendation to adopt resolution 
authorizing staff to conduct pre-bid 
conference for two limousine service 
operations agreements. 

Commissioner Bernstein said that he received a letter from Associated 
Limousine asking for a two week delay on this item in order to have 
the opportunity to speak with Airport staff. 

Commissioner Goosby said that he was not clear if this will be open 
to all limousine companies. 

Commissioner Duvall asked for a staff response to the specific points 
raised in Associated 's letter. 



Authorization to Conduct a Pre-Bid Conference for One Additional 
Automobile Rental Operator 

No. 90-0133 Resolution authorizing a Pre-Bid 

Conference for one additional 
Automobile Rental Operator "Counter 
Space Only. " 

Mr. Peter Green, City Manager for General Rent-A-Car, voiced his 
support for a pre-bid conference to allow an additional on-Airport 
operator. He said that his company believes that having an 
additional on-Airport operator was mutually beneficial because of the 
increase in revenue it would generate. He said that if they were the 
successful bidder they conservatively value it at $250,000 in 
additional revenue to the City. Further, the consumer has a right to 
a larger choice of car rental companies at the Airport. Thirdly, in 
terms of consumer convenience, the existing companies direct their 
approach mainly to the business traveler, leaving the leisure 
traveler exposed. He said that they would be able to expedite the 
leisure traveler far faster just by having a counter at the Airport 
where they could write documentation while passengers wait for their 
baggage to arrive. He hoped the Commission agreed. 

Mr. Turpen said that at one time there were six rental car operators 
at the Airport. One operator withdrew and there were subsequent 
requests to re-bid that space. He said that no bids were submitted 
when the space was re-bid. Staff would like to conduct a pre-bid 
conference to determine interest. Currently, only ticket counter 
space is available. More space will become available when the rent- 
a-car storage garages are completed. 



10. Authorization to Accept Bids for the South Terminal Cigarette Vending 
Lease 

No. 90-0134 

Minutes, August 7, 1990, Page 12 



1 1 . Authorization to Receive Bids For and Hold Over the Lease of North 
Terminal Crab and Seafood Lease 

No. 90-0135 Resolution approving leasehold 

specifications, authorizing staff to 
receive bids, and approving month-to- 
month hold over of the lease of the 
North Terminal Crab and Seafood Kiosks. 

Mr. Turpen said that the cost per square foot was reduced from $100 
to $75. He said that to eliminate f ixturization for the encumbent 
would not be fair to other bidders. In recognition of this the 
amount was reduced. 

Commissioner Goosby asked if the new bidder has the option to buy the 
fixtures from the current operator. 

Mr. Turpen said that that would be a private transaction. The 
winning bidder must submit invoices to ensure that he has met the 
contract requirement of $75 per square foot. 

Commissioner Goosby asked if the winning bidder would still meet the 
Airport's standards if he purchased the fixtures from the current 
operator for $50. 

Ms. Gittens said that whole point is that the Airport wants an 
improvement in the design and appearance of the concession. 

Commissioner Goosby said that if a concession space becomes shoddy 
the Airport can request that it be refurbished. 

Ms. Gittens said that the Airport always puts a provision regarding 
refurbishment in leases at the outset. For example, a ten year lease 
will require a mid-term refurbishment and the bidder knows that 
upfront. 

Mr. Turpen said that he understood what Commissioner Goosby was 
saying, however, if the concessionaire gets a good deal from the 
current operator on equipment that is five years old it does not 
change the basic contract with the Airport. When a bidder bids a 
contract he or she does so with the full understanding that he will 
pay $75 a square foot. That is a set sum whether it be painting, 
carpet, f ixturization, lights, etc., that is the commitment. He said 
it is not a question of need, it assumes a standard. There may be 
improvements beyond the existing standard. He said that the other 
problem is that if staff waives this there will be eleven other 
bidders suggesting that if they had known it would be waived they 
would have bid more and won the bid. He said that the bidding 
process puts everything and everyone on an even keel. 

Commissioner Goosby said that this makes it more difficult on the 
small businessman. It makes sense to let him get by with spending 
$50 rather than $75. 

Mr. Turpen said that the Commission can reduce it to $50 if it 
wi shes . 

Ms. Gittens said that the Commission wouldn't want those two spaces 
looking like that for the next five years. She said that $75 is a 
lot of money, but it doesn't go far at the Airport. She said that 
she was not suggesting that the space looked shoddy but that it would 
not last another five years. 

Commissioner Duvall said that the Airport wants to retain its current 
high standard of concession design. 

Minutes, August 7, 1990, Page 13 



Mr. Turpen said that the Airport has traditionally used a five year 
benchmark for rehabilitation of facilities. At the five year mark of 
a ten year lease, the concessionaire is required to spend $100 or 
$150 per square foot. 

Commissioner Duvall said that her business experience tells her that 
good business practice requires planning for refurbishment of 
f i xtures . 

Commissioner Goosby argued that standards are being set regardless of 
the situation. 

Commissioner Duvall said that the unfortunate thing about contract 
law is that it must be written in objective terms. The Commission 
was concerned about the square foot cost being too high and it was 
brought down to a reasonable amount of money. She said that it is 
costly to do business at the Airport. 

Commissioner Goosby said that this is what keeps prices at the 
Airport up. 

Commissioner Duvall said that there are so many factors that cause it 
to be expensive at the Airport, not the least of which is labor rates 
and the costs of benefits. 

Commissioner Goosby said that everything adds up and the Commission 
should do all it can to reduce the cost of operation and bring the 
costs down for passengers. He said that the biggest criticism listed 
in the passenger survey was the high cost of food. 

Mr. Turpen said that that criticism is specific to a single firm. He 
said that he understood Commissioner Goosby's concerns. The per 
square foot amount could be lowered however the Airport's standards 
fully meet the Commission's expectations and direction. 



12 . Award of Geotechnical Engineering Services Contract to Trans 
Pacific/Dames & Moore 

No. 90-0136 Approve Selection Panel's recommenda- 

tion & award geotechnical engineering 
services contract to Trans Pacific/ 
Dames & Moore for soil analysis for 
about 300 acres of Airport land. Scope 
of work includes 40 borings (up to 200 
feet deep), laboratory analysis of the 
soil samples, ascertaining distance to 
rock bed, determining the seismic 
characteristics of the soil, and 
identifying potential hazardous 
materials. Consultant will also 
prepare contract documents and provide 
construction administration services 
for fabrication of 6,000 piles. 
Contract cost: maximum not-to-exceed 
cost of $415,000 plus $50,000 
contingency budget for additional 
services as authorized by City. 



Minutes, August 7, 1990, Page 14 



13. Award of Professional Service Contract 
Sequoia Analytical Laboratory 

No. 90-0137 Resolution approving the employment of 

Sequoia Analytical Laboratory to 
provide testing services. 



14. Award of North Terminal Candy Store Lease to ABC Cigar Company 
No. 90-0138 

15. Adoption of Fiscal Year 1990/91 Rates and Charges 

No. 90-0139 Resolution adopting (1) Commercial and 

General Aviation Landing Fees and (2) 
Terminal Rental Rates for Fiscal Year 
1990/91 and authorizing $8,100,000 
supplemental appropriation from 
unappropriated surplus to the 
Operating Fund. 

Commissioner Goosby continues to be impressed with the fact that 
these rates are approved without comment from the airlines. 

Mr. Turpen said that this is the best deal in the country for the 
ai rl ines . 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Item No. 17 was removed from the calendar. The remaining items were 
adopted unanimously. 

1 6. Retirement Resolution : 

Pan Am Pilot William G. Frisbie 

No. 90-0140 



Item No. 17 was removed from the calendar 

1 7 . Retirement Resolution: 
CI i f f W1 chmann 



Resolution to Contract for Peace Officer Physical Abilities and 
Medical Standards Study 

No. 90-0141 Resolution to contract for a service 

to validate Airport Police physical 
and medical standards, to develop test 
exercises, and develop a health 
maintenance program. 



Minutes, August 7, 1990, Page 15 



9. Award of Airport Contract No. 2239 Taxi way "R" Widening and 
Reconstruction Between Taxiways "S" and "X" 

No. 90-0142 Resolution awarding Contract No. 2239 

to Fisk, Firenze and McLean, Inc. in 
the amount of $460,139.50. 



20. Bid Call - Contract No. 2331 Silt Removal - 1990 

No. 90-0143 Resolution approving the scope, budget 

and schedule for Airport Contract No. 
2331 and authorizing the Director of 
Airports to call for bids when ready. 



21 . Design Approval - North Terminal, Boarding Area F, Hub Shoeshine Stand 
No. 90-0144 

22 . Resolution Ratifying Personnel Actions 

No. 90-0145 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 

23. Travel Training for Fiscal Year 1990/91 
No. 90-0146 



I. NEW BUSINESS: 

There was no discussion by the Commission 



J. CORRESPONDENCE: 

There was no discussion by the Commission, 



K. CLOSED SESSION: 

24. The Airports Commission will go into Closed Session, pursuant to 
Government Code Section 54957 to consider employee discipline. 



Minutes, August 7, 1990, Page 16 



L. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:32 AM to go into closed ses'ion. 



/Jean Caramatti 
Commission Secretary 



Minutes, August 7, 1990, Page 17 



(§jt&bceiated SZimcu&intt of t&fan ^frunefeeo 

1398 BRYANT STREET. SAN FRANCISCO, CALIFORNIA 94103 (415)563-1000 



AUGUST 6. 1990 
TO: 



FROM: 
RE: 



AIRPORTS COMMISSION 

HON. MORRIS BERNSTEIN. PRESIDENT 
HON. Z.L. GOOSEY. VICE PRESIDENT 
HON. DONALD R. STEPHENS..^ „ <s , -._ 
HON. SHARON B. BUVALL''""^"^ ** ""■"*' l!r * r: ;r "~ r 
HON. PATRICK A. MURPHY 

ASSOCIATED LIMOUSINES OF SAN FRANCISCO 

AIRPORT LIMOUSINE BID DOCUMENT 



HONORABLE COMMISSIONERS: 

ON THE MORNING DF AUGUST 4. 1990. WE RECEIVED A MEMORANDUM FROM 
THE AIRPORT STAFF. IT DETAILED THE CRITERIA FOR A SECOND PRE- 
BID CONFERENCE. WE WOULD LIKE TO ADDRESS SOME CONCERNS OF OURS 
RELATING TO THIS MEMORANDUM. 

1. THERE WERE VERY FEW COMPANIES AT THE FIRST PRE-BID 
CONFERENCE. THE THREE VERY SMALL (it=: TWO OR FEWER LIMOUSINES) 
COMPANIES PRESENT WERE THE ONES WHO ADAMANTLY OPPOSED THE IDEA OF 
A BID FOR EXCLUSIVE COUNT£R~SRAC£uz=55=£i^=£"WO LARGER COMPANIES WERE 
IN FAVOR OF AN EXCLUSIVE ^AGREEMENT. . 

2. FORCING ALL LIHOUSINES .330 INSTALL l^CAA.B^^^«"«»NSPOND€RS 
IS IMPRACTICAL. ^HES&^ffiHiaL^fi 'mB^^m^^^^^^^^g^^^itiO 
THE PRIMARY BUSINESS "IS Sttf ^S^i^^^^^^^j^PgNa^g [rWQULD 
BE ACCEPTABLE ONLY 1F" J TH£Y WERE ^SnAi:l?A^M«®Tje$&lVE ViWB*HOHNT- 
ED ON THE BUMPERw ^/ /feag^- 11 " ' ll '^'' ll ' " iMiMm»fwiiiirimiiiinaimii<wW»^v^// 



3. "EXCLUSIVE PHONE SERVICE" IS AN OXYMORON. TO PAY $20,000 
OR MORE PER YEAR FOR A TELEPHONE IS JUST PLAIN BAD BUSINESS. 
THERE WOUl D BE VIRTUALLY NO WALK UP BUSINESS. AND IT WOULD NOT 
BE COST EFFECTIVE FOR ANY OPERATOR. 

4. IT IS NOT CLEAR AS TO HOW COMPANIES OTHER THAN THE WINNING 
BIDDER WILL BE ALLOWED TtTOPETfoTE. 

5. SOLICITING AND PIRATING WILL INCREASE GREATLY WITH NO OFF-. 
CIAL PRESENCE IN THE TERMINAL. 

6>. TEN LIMOUSINES ARE HARDLY SUFFICIENT FOR THE AIRPORT CON- 

TRACT. THEY MAY OR MAY NOT. ASSUMING ALL TEN ARE AVAILABLE AT 
THE SAME TIME. BE SUFFICIENT TO HANDLE AT LEAST PART OF THE CHAR- 
TER BUSINESS. THFY DEFINITELY WILL NOT BE ABLE TO HANDLE ANY 
SHARE-RIDE BUSINESS. THE SHARE-RIDE BUSINESS HAS ALLOWED THOU- 
SANDS TC RIDF SAFE! Y AND COMFORTABLY IN A LIMOUSINE AT A VERY 




Qfi^ceiatpa s£imou^ine^ of &an Qfraneteeo 

1398 BRYANT STREET, SAN FRANCISCO, CALIFORNIA 94103 (415)563-1000 



REASONABLE RATE. THIS IS A FINE INTRODUCTION FOR FIRST TIME 
VISITORS TO BAN FRANCISCO. THIS IS ALSO THE ONLY WAY THAT THE 
AIRPORT CONTRACT CAN BE MADE PROFITABLE. 

7. IT IS IMPOSSIBLE TO OPERATE A MAJOR LIMOUSINE SERVICE WITH 
EMPLOYEES ONLY AS DRIVERS. THESE PEOPLE -ARE FA I-B ONLY - WHILE 
DOING A SPECIFIC JOB. THESE VEHICLES AND DRIVERS WOUl D NOT RE " ' ~" 
AVAILABLE TO THE AIRPORT. THIS DOES NOT SERVE THE PUBLIC. 



8. A PER LOOP FEE AS WELL AS A FLAT RATF MAKES NO SENSE. 
SHOULD BF ONE OR THF OTHER. 



IT 



IN SUMMATION. TC ENSURE HIGH DUALITY LIMOUSINE SERVICE. MJNIMT7E 
CUSTOMER COMPLAINTS. AND TO MAKE SURE THAT THE TRAVELLING PUBLIC 
HAS P.Z M-"\NV ORTJO!^ AS POSSIBLE. WE RESPECTFULLY ASSi T! :.'-."! THE 
AIRPORT COMMISSION ALLOW A BID FOR EXCLUSIVE COUNTER SPACE. USE 
F"~'-rR MO! '.NT TR ANR c 'ONDERS . AND ALLOW OWNER/OPERATORS TO WORK AS 
INDEPENDENT CONTRACTORS. WITH THE BIDDERS RESPONSIBLE FOR THEIR 
BEHAVIOR. 



THANK YOU FOR Al I OWING MS JC ,-Si^MlT^-IHIS- DOCUMENT. 



SINCERE! V 




^^^^•^^Ms^^^r^-^^^^^^^^m 




JMUUSINCS OF SAN FRANCISCO 




enera! 



RENT-A-CAR 



Dynasty Express Corporation 

d/b/a General Rent A Car 

2741 N. 20th Avenue 

Hollywood, Florida 33020 

1305) 026 1700 Fax: |305| 'J2I 1878 



August 6, 1990 

San Francisco International Airports Commission 

Hon. Morris Bernstein/ President 

Hon. Z.L. Goosby/ Vice-President 

Hon. Donald R. Stephens 

Hon. Sharon B. Duvall 

Hon. Patrick A. Murphy 

Honorable Members Of The Commission/ 

We seek your approval for a pre-bid conference to allow 
additional on-airport operators at San Francisco International 
Airport. We believe that having additional on-airport operators 
benefits both the Airport and the operators themselves in the 
following manner: 

1. Increase in revenues. The Airport would receive an ad- 
ditional 3% of existing revenues plus 10% of incremental 
revenues generated from being on-airport. We would con- 
servatively value this at $250,000 in additional revenue 
for the Airport per annum if we were allowed counter space 
at the terminals. 

2. Additional choice for the consumer. We believe it in the 
best interests of the travelling public to have as wide 

a choice of services available on-airport as possible. 

3. Consumer convenience. Particularly for the leisure customer 
Allowing us to serve our customers on-airport allows a 

much faster turn around time since we can complete the 
documentation required at the same time they are waiting 
for their baggage to arrive. 




Peteir Green 
City Manager 

San Francisco 



3w 



♦* 



■ '■' 

111. I! 



• 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEP" 

SEP 12 



4> 



MINUTES 



SA?J F 
PUBLIC Ui 



^ 



AUGUST 21, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 



MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vict President 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Ai rports Commi ssion 

August 21 , 1990 



CALENDAR 
SECTION 

A. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



RESOLUTION 
NUMBER 



PAGE 
3 

3 



C. 



ADOPTION OF MINUTES: 

Regular meetings of 
June 19, 1990 and 
June 3, 1990 



90-0147 



D. 



DIRECTOR'S REPORTS: 

Report on Lease Option Policy 



3-4 



E. 



ITEMS INITIATED BY COMMISSIONERS: 
Merchandize Assistant 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization to Conduct Pre- 
Qual if ication Process: Airport 
Public Automobile Parking 
Facilities Operating Agreement 

American Airlines Plot 40 - 
Approve Option and Modify 
Rental Rate 



90-0148 



4-5 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 



4. 


Design Approval - Pacific 








Bazaar 


90-0149 


5 


5. 


The Parry Contract 


90-0150 


5 


6. 


Award of Contract No. 2318: 







Runway 28L 90-0151 

Approve Modification of Rental 

Rate for Land and Improvements 

Lease to Northwest Airlines, 

Inr 90-0152 



8. Approval of Claims Settlements 90-0153 



NEH BUSINESS: 

Presentation by Black Chamber 

of Commerce 6-7 



I. CORRESPONDENCE: 

Albert Electric 

J. CLOSED SESSION: 

10. Employee Di scipl ine 

K. ADJOURNMENT: 



Minutes. August 21, 1990. Page 2 



Mi nutes 

of the 

Airports Commission Meeting 

August 21, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:02 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Donald R. Stephens 
Patrick A. Murphy 

Absent: Sharon B. Duvall 



ADOPTION OF MINUTES: 

The minutes of the regular meetings of June 19, 1990 and July 3, 1990 were 
adopted by order of the Commission President. 

No. 90-0147 



D. DIRECTOR'S REPORTS: 

1 . Report on Lease Option Policy 

Mr. Lou Turpen, Airport Director, said that this item was'put over 
from the last meeting. It addresses the criteria which staff might 
employ to evaluate the appropriateness of a lease option when 
awarding certain concession contracts at the Airport as opposed to a 
straight lease. He said that if the Commission is in agreement staff 
would return with item formulated as a policy. 

Commissioner Murphy said that he had trouble understanding the 
conditions listed on page two of the memo. He said that the one that 
troubled him the most was the condition that read: "In order to 
encourage bidder participation for concessions where the amortization 
of capital expenditures will require a longer term." He said that as 
he understand lease options, the lessee has no right to renew. The 
right to renew is solely at the discretion of the Commission. He did 
not know that lessees would expect to be able to amortize capital 
expenditures under those circumstances. He said that he was 
concerned that lessees or concessionaires will have some sort of a 

Minutes. August 21, 1990. Page 3 



commitment to grant them the option because they have committed to a 
capital expenditure program that can't be amortized in the original 
term of the lease. He said that in the law there are concepts that 
fall under equitable estoppel, where someone is allowed to enter an 
expenditure of this sort, for example, without saying anything. He 
was concerned that the argument could be made that by having 
permitted them to enter into this capital expenditure we would be 
committed to exercise the option whether or not we wanted to. 

Mr. Turpen said that this was an attempt to capture a set of criteria 
which might govern staff's recommendations to the Commission of a 
lease option alternative. Rather than do that, he said he would like 
to return to what has been done traditionally, i.e., if staff 
believes a lease option is appropriate, or when staff requests the 
right to conduct a pre-bid conference the appropriateness of a 
specific issue can be debated rather than trying to establish some 
broad brushed parameters. 

Mr. Turpen said that he would like to shelve it for a few months and 
ressurect it if it becomes appropriate. In the meantime staff will 
continue with the traditional practice. 



E. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein asked Mr. Turpen to calendar a reconsideration of a 
merchandize assistant to assist smal 1 /minori ty businesses. 

Mr. Turpen said that he would calendar it for the next meeting. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item no. 2 was put over . 

2 . Authorization to Conduct Pre-Qual if ication Process: 

Airport Public Automobile Parking Facilities Operating Agreement 

Resolution authorizing staff to 
conduct the pre-qual if ication process 
for the Airport Public Automobile 
Parking Facilities Operating Agreement 

Commissioner Stephens asked that this item be put over, feeling it 
appropriate that all Commissioners be present for the discussion. 

Mr. Turpen said that he would recalendar it for the next meeting. 



Item no. 3 was adopted unanimously. 

3. American Airlines Plot 40 - Approve Option and Modify Rental Rate 

No. 90-0148 Resolution approving American's 

exercise of its option and the 
modified rental rate for Plot 40. 



Minutes, August 21, 1990, Page 4 



Mr. Turpen explained that the rental rate is going to be adjusted on 
an interim basis pending the outcome of negotiations. He said that 
American nas agreed to pay the higher rate. The disputed rate is 
part of some other negotiations going on with respect to American 
Airlines and other property issues. He said that he hoped to tie it 
all up and bring it back to the Commission in the next two to three 
months . 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were adopted unanimously. 
4. Design Approval - Pacific Bazaar 



No. 90-0149 



Resolution approving design of Pacific 
Bazaar concession. 



5. The Parry Contract 
No. 90-0150 



Contract for the Parry Company to 
produce four noise impact area 
contours to be used on the Quarterly 
Report and at the Airport Roundtable. 
The contract also provides for 
appearances by representatives from 
the Parry Company to substantiate the 
noise contours ($30,000). 



Award of Contract No. 2318: 
Runway 28L 

No. 90-0151 



Resolution awarding Contract No. 2318 
Runway 28L pavement grooving 
(West-end) to Hunt PSI Corp. in the 
amount of $79,144.50. 



7. Approve Modification of Rental Rate for Land and Improvements Lease 
to Northwest Airlines, Inc. 



No. 90-0152 



Recommendation for Director of 
Airports to increase building and land 
rental rates. 



Approval of Claims Settlements 
No. 90-0153 



Resolution approving the settlement of 
claims not exceeding $5,000.00 for the 
period January 1990 to July 1990. 
Total Claims: $20,645.00. 



Minutes, August 21, 1990, Page 5 



NEW BUSINESS: 

9. Presentation by Black Chamber of Commerce 

The following is a verbatim transcript of Item No. 9. 

Mr. Turpen: Do we have a representative of the Black Chamber of 
Commerce here? If you could provide your name, affiliation and soeak 
into the microphone, please. 



Mr. Kevin Williams: My name is Kevin Williams and I'm with the San 
Francisco Black Chamber of Commerce. 

This morning Commissioners we'd like to address some specific 
concerns. My purpose this morning is to bring to the Commission's 
attention the strong concerns relating to the low level of Black 
participation in Airport contracts. First, it is the Chamber's 
contention that the Airport, in substantial part, has no proactive 
program other than a sc-called equal opportunity program. Other 
agencies of the City, in view of ... (uni ntel 1 igable) ... have issued 
and adopted statements limited to mere good faith efforts to achieve 
certain results. Secondly, statistics released by the Human Rights 
Commission reflecting 1.7 percent Black participation city-wide is 
also inclusive of dismal Airport contracts that are awarded to Blacks 
in areas related to architectural engineering and consulting, 
including construction contracts. These data reflect that so-called 
good faith efforts have failed. A further illustration of this rests 
in your own data of major contract awards in the area of construction 
covering fiscal year ' 88/ ' 89 wherein 74 contracts were issued 
totaling $24-million. Black contractors received two contracts for 
just $118,000.00, representing one half of one percent. According to 
the Airport's 1989 list of approximately 260 franchises, concessions 
and leasing tenants, a total of just eight, or 3 percent, are held by 
Human Rights Commission certified minorities and women. Eighty 
percent of the Airport's tenants are from outside of San Francisco. 
Blacks and Hispanics, individually and respectively, represent a mere 
0.3 percent, and women, 1 percent of the total number of Airport 
tenants as of the first quarter of 1989. 

With respect to your own departmental data covering fiscal year '88/ 
'89, there is uncontestable proof of the Airport's disproportionately 
lower contract awards to Blacks then the available number able to 
contract services to the City. 

The Board of Supervisors and the Human Rights Commission concluded 
that inferences of discriminatory procurement practices may be drawn 
from statistical data on MBE/WBE awards in 1983, 1984, at the time 
the prior ordinance was passed. This conclusion was again affirmed 
in 1988 and in 1989 upon the enactment of the present ordinance last 
July. 

Section 12D, paragraph A, subsection 2 states, and I quote: 



The evidence before this Board relating to the award of 
prime public works construction contracts for fiscal 
year 1987 and 1988 reflects that MBEs, each ethnic group 
identified as minority, and WBEs continue to be awarded 
contract dollars in amounts di sproportionatly lower than 
the available number of MBE and WBE prime public works 
construction contractors willing and able to perform 
City construction work. These results cannot be 
attributed to chance. In light of the testimony before 



Minutes. August 21, 1990, Page 6 



this Board and Commission, in 1983, 1984, 1988 and 1989 
this Board finds that these results can only be 
attributed to discriminatory procurement practices. 

Notwithstanding the numbers, there are numerous discrimination 
complaints lodged by Blacks against the Airport and at least one 
lawsuit in the case of one Black contractor, Albert Electric. 
Certainly this is an indication that cries out for action by this 
Commi ssion. 

A third concern we have is that the Airport administration has 
intentionally used FAA funding and FAA rules as a cloak to avoid 
local preferences. This has been done illegally. The Airport has 
taken the position on at least $11 -mi 1 1 i on in contracts that we know 
of that bid preferences to MBE/WBE/LBE, under the ordinance, did not 
apply when they should have. US Congressman Ronald B. Dellums, the 
author of the Surface Transportation Act, has investigated this 
matter and has been in direct communication with the Mayor two 
times. I will be happy to provide those letters of correspondence to 
you later. I won't bore you with the mundane details of that. To 
that end we called for an independent assessment of the situation, 
Commissioners, so that the issues that have been raised may be 
satisfied. Such an impartial assessment is critical in as much as 
Airport management and its legal counsel is critically implicated so 
that this Commission may exercise its rightful policy overview of 
management since the Commission bears full and ultimate 
responsibility in the public's interest for fair and objective 
disposition of the critical concerns of the business community. 

Nith that I'd like to thank you very much for the opportunity to 
appear here this morning. I'm certain that some of these statistics, 
some of these concerns may surprise you but in the Black business 
community they need contracts ... contacts will not do. The Black 
community has said that they buy airplane tickets and they deserve to 
be represented by what they spend and what they provide by way of 
dollars to the Airport. It's a fair exchange and a fair return. 
Thank you. 



Commissioner Goosby: Would you send us copies of that. 

Mr. Williams: I certainly will. 

Mr. Turpen: Thank you, very much. 

Commissioner Bernstein: Would you want to answer him now. 

Mr. Turpen: No. 

Commissioner Goosby: Let's get the written document. 

Mr. Turpen: I think that's right. 

Commissioner Bernstein: Thank you, Mr. Williams. 

* * * 



Minutes, August 21, 1990, Page 7 



I. CORRESPONDENCE: 

Mr. Dennis Bouey, Deputy Direc 
Maintenance, said that yesterd 
Albert Electric Co. and contra 
the prime on that contract has 
Electric with another electric 
continued failure to complete 
fashion, there non-attendance 
failure to meet promised deadl 
days to respond to the substit 
business tomorrow. As of yest 
He explained that whether Albe 
require a meeting of the Commi 
the protest should Albert Elec 



tor of Facilities Operations and 
ay he sent the Commission a memo regarding 
ct 1011B.1. He said that Anderson Pacific, 
once again asked to substitute Albert 
al subcontractor. The reason is Albert's 
their portion of this contract in a timely 
at the work site, and their continued 
ines. He said that Albert has five business 
utions. The fifth business day is close of 
erday evening we had not heard from Albert, 
rt protests the substitution or not it will 
ssion to approve the substitution or hear 
trie wish to do so. 



Commissioner Goosby noted that the Human Rights Commission has recommended 
that the substitution be approved. He asked if the Commission could 
approve it today. 

Mr. Bouey responded that Albert Electic has five days in which to respond 
after which time the Commission must meet and either hear the protest or 
approve the substitution. 

Commissioner Goosby asked if the prime contractor was holding Albert's 
money. 

Mr. Bouey responded that the City is holding the money back. He said that 
at this point there is more in stop notices against Albert Electric than 
he has money coming for the remaining portion of his contract. In effect, 
the prime contractor will have to eat a certain amount of money ... 
between $25,000 and $50,000. He presumed that Anderson Pacific will go to 
Albert's bonding company for that money. 



CLOSED SESSION: 

10. The Airports Commission will go into Closed Session, pursuant to 
Government Code Section 54957 to consider employee discipline . 



The Commission did not go into closed session 



K. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:22 AM. 



\fus 



i-<UlXY^t~tU 



\Jean Caramatti 
Commission Secretary 



Minutes, August 21 1990, Page 8 



3- 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOC! 

OCT - 4 1990 



MINUTES 



4. 



SEPTEMBER 4, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

DR. Z. L. GOOSBY 

Vict Prt»id»nt 

DONALD R. STEPHENS 

SHARON B. DUVALL 

PATRICK A. MURPHY 

LOUIS A. TURPEN 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 
Airports Commission 

September 4, 1990 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A Court Reporter's transcript of this meeting is available upon request. 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular meetings of 

August 7 and August 21, 1990 90-0154 3 

D. DIRECTOR'S REPORTS: 

1. Moratorium on Issuing Airport 
Permits to Firms Proposing to 
Operate Door-to-Door Service 
Between the Airport and San 

Francisco 3 

E. ITEMS INITIATED BY COMMISSIONERS: 

Art Store at the Airport 3 

F. ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

2. Anderson Pacific Engineering 
Inc.'s Request to Substitute 
Albert Electric Company, Inc., 
Electrical Subcontractor on 

Airport Contract No. 101 IB. 1 90-01 5-5 4 

3. Authorization to Conduct Pre-Bid 
Conference - Limousine Service 

Operating Agreements 90-0156 4 

G. CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

4. Declaration of Emergency - 
Contract No. 2354 - Electrical 
Power Cable Splice Failure - 

Cable 12MTR-1 90-0157 4 

5. Bid Call - Contract No. 2347 - 
North Terminal Terminal Stairway 

Repair 90-0158 4 



Award of Contract No. 1864 - 

Road R-5 Reconstruction and 

Overlay 90-0159 

Hold Harmless Agreement with the 

City of San Mateo for Airport 

Police Motorcycle Training 90-0160 

Hold Harmless Agreement with the 
State of California for Airport 
Police Commercial Reinforcement 
Training 90-0161 

Resolution Ratifying Personnel 

Actions 90-0162 



H. NEH BUSINESS: 

Problems with MBW Program 5 

Cal Train Link with Airport 5 

I. CORRESPONDENCE: 5 

J. ADJOURNMENT: 5 



Minutes, September 4, 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

September 4, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:03 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Patrick A. Murphy 

Absent: Donald R. Stephens 

Sharon B. Duval 1 



C ADOPTION OF MINUTES: 

The minutes of the regular meetings of August 7 and August 21, 1990 were 
adopted by order of the Commission President. 

No. 90-0154 



A complete court reporter's transcript of the meeting is available upon 
request. 

D. DIRECTOR'S REPORTS: 

1 . Moratorium on Issuing Airport Permits to Firms Proposing to Operate 
Door-to-Door Service Between the Airport and San Francisco 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein asked the Director to look into the possibility of 
installing a museum-type art store at the Airport. 



Minutes, September 4, 1990, Page 3 



F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item no. 2 was adopted unanimously as amended. 

2. Anderson Pacific Engineering Construction Inc.'s Request to 

Substitute Albert Electric Company, Inc., Electrical Subcontractor on 
Airport Contract No. 1011B.1 

No. 90-0155 



Item No. 3 was adopted unanimously. 

3. Authorization to Conduct Pre-Bid Conference - Limousine Service 



Operating Agreements 
No. 90-0156 



Recommendation to adopt resolution 
authorizing staff to conduct pre-bid 
conference for two limousine service 
operating agreements. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

4. Declaration of Emergency - Contract No. 2354: 

Electrical Power Cable Splice Failure - Cable 12 MTR-1 



No. 90-0157 



Resolution ratifying the action of the 
President of the Commission in 
declaring an emergency and authorizing 
the immediate start of work to replace 
the failed electrical power cable 
spl ices. 



Bid Call - Contract No. 2347: 
North Terminal Stairway Repair 

No. 90-0158 



Resolution approving the scope, budget 
and schedule for Contract No. 2347, 
and authorizing the Director of 
Airports to call for bids when ready. 



Award of Contract No. 1864: 

Road R-5 Reconstruction and Overlay 



No. 90-0159 



Resolution awarding Contract No. 1864 
to Ghilotti Bros., Inc. in the amount 
of $298,892.00. 



Hold Harmless Agreement with the City of San Mateo for Airport Police 
Motorcycle Training 



No. 90-0160 



Minutes, September 4, 1990, Page 4 



8. Hold Harmless Agreement with the State of California for Airport 
Police Commercial Reinforcement Training 

No. 90-0161 



9. Resolution Ratifying Personnel Actions 
No. 90-0162 



Resolution, in accordance with the 
requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



H. NEW BUSINESS: 

Mr. Leroy Albert of Albert Electric spoke about problems with the MBE 
program at the Airport. 



Dr. Nancy Jewel Cross of Clean Air Transport Systems spoke about the 
CalTrain connection to the Airport. 



* * * 

I. CORRESPONDENCE: 

There was no discussion by the Commission 

* * * 



J. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:10 AM. 

/3ean Caramatti 
/Commission Secretary 



Minutes September 4, 1990, Page 5 



ifctad 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

°CT 1 51990 



i 



^MINUTES 

^, September 18, 1990 

ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L GOOSBY 

Vice President 

SHARON B. DUVALL 

PATRICK A. MURPHY 

J. STANLEY MATTISON 

LOUIS A. TURPEN 
Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

September 18, 1990 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A court reporter's transcript of this meeting is available upon request. 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular meeting of 

September 4, 1990 90-0163 3 

D. ITEMS INITIATED BY COMMISSIONERS: 3 

E. DIRECTOR'S REPORTS: 

1. Review of Airport Commission's 
Mass Transit Policy, Resolution 
No. 83-0339 3 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Airport Public Automobile Parking 
Facilities Operating Agreement - 
Authorization to COnduct Pre- 
Qualification Process 90-0164 

Rejecting All Bids - Contract 
No. 1559D - Taxiways 'E' and 'M' 
Overlay and Reconstruction 90-0165 

Duty Free Shoppers, Ltd - 

Modification tolnternational 

Terminal Principal Concession 

Lease 90-0166 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

5. Changing of Deak International 
Limited' s Corporate Name to 
Thomas Cook Foreign Exchange, 
Inc. and Use of "Thomas Cook" 
as its Trade Name 90-0167 



Modification No. 5 to Agreement 
with Hanson, Bridgett, et al - 
$150,000.00 



H. PUBLIC HEARING: 

7. Hearing on Increase in Public 

Parking Rates 4 

8. Hearing on a Proposed Amendment 
to the Airport's Rules & Regula- 
tions Requiring Inspection of 
all Vehicles with Less than Ten 
Seats Operated by Ground 

Transportation Permittees 5 

I. NEW BUSINESS: 5 

J. CORRESPONDENCE: 5 

K. ADJOURNMENT: 5 



Minutes, September "8, 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

September 18, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Sharon B. Duval 1 
Patrick A. Murphy 
J. Stanley Mattison 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of September 4, 1990 were adopted by 
order of the Commission President. 

No. 90-0163 



A court reporter's transcript of this meeting is available upon request. 
D. DIRECTOR'S REPORTS: 

1 . Review of Airport Commission's Mass Transit Policy, Resolution No. 
83-0339 

* * * 

F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 
The following items were adopted unanimously. 

2. Airport Public Automobile Parking Facilities Operating Agreement - 
Authorization to Conduct Pre-Qual if ication Process 

No. 90-0164 Resolution authorizing staff to 

conduct the pre-qual if ication process 
for the Airport Public Automobile 
Parking Facilities Operating Agreement 

Minutes, September 18, 1990, Page 3 



Rejecting ATI Bids - Contract No. 1559D 
Taxiways 'E' and 'M' Overlay and Reconstruction 

No. 90-0165 Resolution rejecting all bids for 

Contract No. 1559D, Taxiways 'E' and 
'M', Overlay and Reconstruction, and 
authorizing the Director to call for 
rebid when ready. 



Duty Free Shoppers, Ltd. - Modification to International Terminal 
Principal Concession Lease 

No. 90-0166 Resolution modifying Duty Free 

Shoppers, Ltd.'s International 
Terminal Principal Concession Lease, 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The of 1 lowing items were adopted unanimously. 

5. Changing of Peak International Limited' s Corporate Name to Thomas 

Cook Foreign Exchange, Inc. and Use of "Thomas Cook" as its Trade Name 

No. 90-0167 Resolution consenting to Deak 

International Limited changing its 
corporate name to Thomas Cook Foreign 
Exchange, Inc. and consenting to their 
doing business under the trade name 
"Thomas Cook". 



Item No. 6 was put over to the meeting of October 2, 1990. 

6. Modification No. 5 to Agreement with Hanson, Bridgett, et al - 
$150,000.00 

Resolution approving and authorizing 
Modification No. 5 to Agreement with 
law firm of Hanson, Bridgett, Marcus, 
Vlahos & Rudy to increase compensation 
payable by the sum of $150,000.00. 



H. PUBLIC HEARING: 

The public hearing on Item No. 7 was opened at 10:36 AM and closed at 
10:38 AM, there being no comments from the public. 

7. Hearing on Increase in Public Parking Rates 



Minutes, September 18, 1990, Page 4 



The public hearing on Item No. 8 was opened at 10:39 AM and closed at 
10:39 AM, there being no comments from the public. 

8. Hearing on a Proposed Amendment to the Airport's Rules and 

Regulations Requiring Inspection of All Vehicles with Less Than Ten 
Seats Operated by Ground Transportation Permittees 

The Airports Commission is being asked 
to hold a public hearing on a proposed 
amendment to the Airport's Rules and 
Regulations requiring all ground 
transportation permittees operating 
vehicles with less than ten passenger 
seats to have these vehicles inspected 
annually by either the California 
Highway Patrol or the Airport Police. 



I. NEW BUSINESS: 

There was no discussion by the Commission, 



J. CORRESPONDENCE: 

There was no discussion by the Commission 



ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:39 AM. 



an Caramatti 

ission Secretary 




Minutes, September 18, 1990, Page 5 



\ h SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



^ OCTOBER 2, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Presidtnt 
DR. Z. L. GOOSBY 

Vict President 
DONALD R. STEPHENS 
SHARON B. DUVALL 
PATRICK A. MURPHY 

LOUIS A. TURPEN 
Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

October 2, 1990 



CALENDAR 
SECTION 

A. 
B. 
C. 



AGENDA 
ITEM 



TITLE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
October 2, 1990 



RESOLUTION 
NUMBER 



PAGE 
3 



90-0168 



E. 



SPECIAL ITEM: 

Election of Officers 

ITEMS INITIATED BY COMMISSIONERS 



90-0169 



PENDING LEGISLATION: 

AB 3147, AB 1506, AB 2491 

SB 2405, SB 2255, SB 1723, 3094 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Adoption of an Amendment to the 
Airport's Rules & Regulations 
Requiring Inspection of All 
Vehicles with Less than Ten 
Seats Operated by Ground 
Transportation Permittees 

Adoption of Increases in Public 
Parking Rates 

Award of Contract No. 2160: 
In-Transit Lounge, I.T. 



90-0170 



90-017' 



5 

5 

5-6 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Modification No. 5 to Agreement 

with Hanson, Bridgeett, Et Al - 90-0172 

$150,000.00 



6. Reimbursement to American 
Airlines for Canadian Airlines 
International Ltd. Relocation 

Costs 90-0173 6 

7. Award of Contract No. 2298: 
International Terminal Fifth 

Floor Alteration 90-0174 6 

8. Award of Contract No. 2331: 

Silt Removal 1990 90-0175 7 

9. Bid Call - Contract No. 2281 90-0176 7 

10. North Terminal Executive 
Stationery Store - Design 

Approval 90-0177 7 

11. Resolution Ratifying Personnel 

Actions 90-0178 7 



NEW BUSINESS: 

Mark Adams Taspetries 7-8 

BART Exit at Airport 8-9 

Runway Reconfiguration 9-12 

CORRESPONDENCE: 12 

ADJOURNMENT: 12 



Minutes, uctober 2, 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

October 2, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:04 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

Z. L. Goosby, Vice President 
Patrick A. Murphy 
J. Stanley Mattison 

Absent: Sharon B. Duval 1 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of September 18, 1990 were adopted by 
order of the Commission President. 

No. 90-0168 



SPECIAL ITEM: 

The following item was adopted unanimously. 

1 . Election of Officers 

No. 90-0169 

Commissioner Murphy nominated Commissioners Bernstein and Goosby as 
President and Vice President, respectively. Commissioner Mattison 
seconded the nomination. 



E. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Mattison asked Mr. Turpen to clarify the current proposed 
BART configuration. 

Mr. Turpen said that that item could be taken up under New Business. 

Minutes. October 2, 1990, Page 3 



PENDING LEGISLATION: 

Mr. Turpen said that the Commission should have received a memo from 
Angela Gittens concerning State legislation. He said that AB 3147, which 
makes it a misdemeanor to trespass on the airfield, was carried for the 
Airport by Assemblywoman Speier and signed into law by the Governor. 

The Airport's amendments to AB 1506 regarding limousine operations, were 
accepted and signed into law by the Governor. 

The bill concerning off-Airport rent-a-cars, AB 2491, was opposed by the 
Airport and vetoed by the Governor. 

Senator Kopp's bill, SB 2405, the noise nuisance bill, was opposed by the 
Airport and vetoed by the Governor. 

Senator Roberti's bill, SB 2255, prohibiting discrimination in the 
allocation of gates and in effect allowing the State to take over the 
allocation of Airport gates was opposed by the Airport and vetoed by the 
Governor. 

Senator Roberti's bill, SB 1723, was opposed by the Airport and failed in 
the Assembly. 

Mr. Turpen said that last Thursday the Board of Supervisor's Committee 
heard Senator Kopp's proposed resolution on a BART extension to the 
Airport. That item was put over to the call of the chair. He sensed that 
the feeling of the Committee was that they would prefer to see further 
information from MTC and not act precipitously in the matter. 

Mr. Turpen said that 3094 was introduced in the U.S. Senate last night. 
This bill would reverse US aircraft noise policy, nullify local airport 
operator's noise rules and place liability for noise damages with the 
Federal Government. This would all be tied to a passenger facility 
charge. The bill is being sponsored by Senator Ford. 

Mr. Turpen explained that as he had to be on record by noon today, 
Washington time he has gone on record as opposing this legislation. He 
said that the passenger facility charge is not a particularly attractive 
mechanism to SFO because its structure does not allow for any transfer of 
funds beyond the Airport to the owning agency. Furthermore, superceding 
Airport's Commission Rules and Regulations concerning noise would create a 
very difficult local environment. He said that although the Federal 
Government would be responsible, the Airport would be held accountable. 
If we are going to be held accountable by the people in the area we need 
to be responsive to them and to do that we need local controls. He 
objected to the provisions as they would nullify local noise regulations 
and in effect cause everything we've done over the past several years with 
respect to the Q707, Stage II aircraft to go by the wayside. 

Mr. Turpen said that the Commission's position on this issue is clear and 
he will keep them advised as this progresses. He explained that this was 
a recent event and there have been no public hearings or Senate hearings 
on this issue. He said that this bill will casually set aside every noise 
regulation in the U.S. and it is a very serious matter. 



Minutes, October 2, 1990, Page 4 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 2 was adopted unanimously. 

2. Adoption of an Amendement to the Airport's Rules and Regulations 
Requiring Inspection of All Vehicles with Less Than Ten Seats 
Operated by Ground Transportation Permittees 

No. 90-0170 The Airports Commission is being asked 

to adopt an amendment to the Airport's 
Rules and Regulations requiring all 
ground transportation permittees 
operating vehicles with less than ten 
passenger seats to have these vehicles 
inspected annually by either the 
California Highway Patrol or the 
Airport Pol ice. 



Item No. 3 was put over to November 4, 1990. 

3. Adoption of Increases in Public Parking Rates 

Resolution authorizing increases in 

the Garage and Lot D parking rates. 

Commissioner Murphy said that he has some questions and concerns and 
asked that the item be put over. 

Mr. Turpen said that it could be put over to the November 4 meeting. 



Item No. 4 was adopted unanimously. 

4. Award of Airport Contract No. 2160 : 
In-Transit Lounge, I ,T. 

No. 90-0171 Resolution awarding Contract No. 2160 

to KMF Associates in the amount of 
$208,828.00. 

Mr. Turpen said that Qantas agreed to move its VIP Club to the fourth 
floor of the International Terminal, allowing the Airport to pave the 
way to create an in-transit lounge. He said that transiting 
international passengers is a new occurance at SFO. It began with 
UTA's Tahiti to Paris flight. He said that as Pacific traffic grows, 
transit hubbing will grow. He explained that these passengers, in 
effect, will not be in this country when they are in this room. He 
said that the lounge will be located downstairs in the International 
Terminal where the airline club lounges are located. 

Commissioner Goosby asked if KMF was new. 

Mr. Dennis Bouey, Deputy Director for Facilities Operations and 
Maintenance, responded that this is their first contract with the 
Airport. 

Commissioner Goosby asked if they were a local company. 

Mr. Bouey responded that they are a local company but they have not 
yet applied for LBE certification. He said that his staff has sent 
KMF a letter urging them to apply for certification as it would be in 
their best interest. 

Minutes, October 2, 1990, Page 5 



Commissioner Goosby assumed that LBW/MBE/WBE still plays a role in 
construction contracts but not on concession contracts. 

Mr. Bouey responded that that was correct. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Item No. 5 was adopted by a 3-1 vote, with Commissioner Goosby casting the 
dissenting vote. 

5. Modification No. 5 to Agreement with Hanson, Bridqett, Et Al - 
$150,000.00 

No. 90-0172 Resolution approving and authorizing 

Modification No. 5 to agreement with 
law firm of Hanson, Bridgett, Marcus, 
Vlahos & Rudy to increase compensation 
payable by the sum of $150,000.00 

Commissioner Goosby said that the Airport is not making the progress 
in this area that is being made in other areas of the Airport and he 
felt that it was due to a lack of commitment. He said that some of 
the contracts assigned to Hanson, Bridgett could have been assigned 
to Arnelle and Hastie. He further stated that if there are problems 
with Arnelle and Hastie the Airport should hire another firm. He 
said that in all his years in City government he has never been an 
advocate of any particular minority firm. 

Commissioner Mattison concurred with Commissioner Goosby 's 
observations and seconded any efforts towards increasing the 
Airport's focus in that area. He did not, however, conclude to move 
against this item nor did he see it as a necessary precedent to 
reallocation at this time. 

Mr. Turpen said that staff can respond to Commissioner Goosby's 
concerns very effectively in the next few weeks. 



Item nos. 6 through 11 were adopted unanimously. 

6. Reimbursement to American Airlines for Canadian Airlines 
International Ltd. Relocation Costs 

No. 90-0173 Resolution approving reimbursement to 

American Airlines for expenses 
incurred relocating Canadian Airlines 
Ltd. 



7. Award of Contract No. 2298: 



International Terminal Fifth Floor Alternation 

No. 90-0174 -Resolution awarding Contract No. 2298, 

International Terminal Fifth Floor 
Alteration, to Agbagani Construction, 
Inc. in the amount of $127,600.00. 



Minutes, October 2, 1990, Page 6 



Award of Contract No. 2331 : 
Silt Removal 1990 

No. 90-0175 Resolution awarding Contract No. 2331 

to Covey Trucking Company in the 
amount of $60,060.00 



Bid Call - Airport Contract No. 2281 

No. 90-0176 Resolution to approve the scope and 

budget and authorize the Director to 
call for bids on the subject 
contract. The contract calls for a 
new lighting system and telephone 
service to the Police Range and 
Superbay Gate. 



10. North Terminal Executive Stationery Store - Design Approval 

No. 90-0177 Resolution approving design of North 

Terminal Executive Stationery Store. 



Resolution Ratifying Personnel Actions 
No. 90-0178 



I. NEW BUSINESS: 

Commissioner Bernstein said that he recently received a letter from the 
Art Commission indicating that they were going to use the Adam's tapestry 
and asked why. 

Mr. Turpen responded that the Adam's tapestry will be on loan to the Art 
Commission for display and will return to the Airport at another 
appropriate location. He explained that one reason for the loan is due to 
a space problem being created by the development of the United Airlines 
hub ... they have some lounge space requirements that can't be met. 
Rather than create a lounge space with that tapestry secluded-from public 
view, Jason Yuen arranged for a loan of the tapestry on a temporary basis 
to accommodate the construction of the United lounge and to keep it on 
public display until such time as another appropriate installation site 
could be found. 

Commissioner Bernstein asked how long the Art Commission will have the 
tapestry. 

Mr. Turpen responded that he did not know. He said that Mr. Yuen or John 
Costas would probably know, but they were not present. He told 
Commissioner Bernstein that he would get back to him. 

Commissioner Bernstein asked if the Airport has loaned art pieces before. 

Mr. Turpen responded that he was not certain what the policy has been. He 
said that the City owns the art and it is managed by the Art Commission. 

Minutes, Octobei 2, 1990, Page 7 



Commissioner Bernstein wanted this issue placed on each Airport calendar 
until it is resolved. He said that in addition to the obvious monetary 
value of the pieces, they provide a great deal of pleasure to the 
travel ing publ ic. 

Commissioner Goosby asked where the tapestries were being placed. 

Mr. Turpen responded that Jason Yuen is the Airport's Art Commission 
liaison and he has worked with the Art Commission on this matter. He said 
that Mr. Yuen told him where the location was but he could not remember. 

Commissioner Murphy asked when the tapestries would be returned to the 
Airport. 

Mr. Turpen responded that he did not remember ... it could be a year or 
two. 

Commissioner Murphy felt that loans of this sort are best done for a 
period of time as opposed to being open ended. 

Mr. Turpen said that it was his understanding that it was for a period of 
time, but he just can't remember. 

Commissioner Murphy asked that care be taken to specify a period of time. 

Mr. Turpen said that he will get back to the Commission. 



Commissioner Mattison said that the intent was that the BART terminus 
would go to the terminal underground, stop, and go along the northern 
trace, costing about $300-mi 1 1 i on more than a full service in-line BART 
station on the alternative right of way. Senator Kopp made it very clear 
that throughout the years in which this was discussed it was never the 
intent that BART end at the Airport but rather that there be a logical 
flow egress, with its feasibility to be left for future generations to 
decide. 

Commissioner Mattison asked Mr. Turpen to ask the BART Board if they 
envisioned utilizing the dead end spur as it is currently configured as a 
normally operating scheduled BART station, and if so, try to get some 
insight as to how that can physically be accomplished. He said that he 
did not understand how, in the normal course of BART service down the 
Peninsula, it can veer off, go to a dead end, stop and then somehow get 
trains back onto the main line, and do that with trains coming both North 
and South. He said that if the BART Board says it can be done for an 
extra $300-mi 1 1 ion and this is how it will work, it would be a helpful 
insight. If the BART Board says that it has always been envisioned that 
some day a plan would be devised which would get the trains back out 
through the already constructed southern part of the Airport and back to 
the main line, then we are not talking about a $300-mi 1 1 ion difference, we 
are talking about $300-mi 1 1 ion to get in and x to get out. He said that 
he needs to know what x is. If the Airport is to be a continuation 
station, which is probably envisioned for southern Peninsula traffic, then 
the equation must be balanced with two equally serviceable alternatives. 

Mr. Turpen said that he would be happy to make that request and return to 
the Commi ssion . 

Commissioner Goosby said that according to a letter recently received from 
a Sacramento architect, no underpinnings were placed under the South 
Terminal for an exit. 



Minutes, October 2. 1990, Page 8 



Commissioner Mattison said that the architect also made the observation 
that during the time the North Terminal was being built, no thought had 
been given as to how to get the trains back out to the South. 

Commissioner Murphy said that in a recent letter he received from a local 
landscape architect, the observation was made that if this was going to be 
done it should run through the Airport and down to Mi 1 1 brae . He said that 
it is hard to argue with that logic, but this is a matter of cost and no 
one has the faintest idea what that cost will be. He felt that the people 
the Airport has been dealing with recently don't much care. He suggested 
that this issue would be best taken up with MTC as well as BART. He 
commented that he has not found BART's attitude to be particularly 
constructive. 

Commissioner Mattison agreed and would only look to them for operational 
comments. He said that they may have decided that they can somehow 
operate with this sort of configuration but he does not understand it. 

Commissioner Murphy felt that it would have to be some sort of spur going 
out of the Tanforan station. 

Commissioner Goosby said that the Airport has not yet seen figures that 
would include rejoining the main line. 

Commissioner Murphy said that passengers will be happily commuting by 
train down the Peninsula from the Airport while the BART extension is 
sti 1 1 being discussed. 

Mr. Turpen said that he would be happy to communicate with BART and MTC on 
behalf of the Airports Commission. 



Mr. Tim Treacy, San Francisco Airport Noise Committee, said that his 
Committee has not yet made a recommendation to the Board of Supervisors 
regarding the present state of the runway reconfiguration study, nor has 
the Board of Supervisors adopted a position. 

Mr. Treacy said that his Committee received a copy of the initial draft 
and they provided comments to Airport staff by letter dated August 14, 
1990. He said that the document received is an executive summary of the 
runway reconfiguration study and they are disturbed by what the study 
omits rather than what it summarizes. The study is candid in stating, 
with respect to the Peninsula communities, if the proposed alternatives 
are undertaken there will be an enhancement of the quality of life on the 
Peninsula, increased home values and increased safety. He said that the 
report is also candid in stating that this will come at the expense of San 
Francisco residents. The report gives no further consideration to the 
problems that will result in San Francisco if any of these favored 
alternatives are adopted. 

Mr. Treacy said that they are disturbed that the Airport would go ahead 
with a report that admits, in its initial stages, that there the results 
to San Francisco residents will be detrimental and adverse and then 
proceeds to dismiss that as a further concern in the report. He said that 
if there is a perceived safety problem he did not understand how the 
Commission could undertake a study that would simply transfer that safety 
problem from the Peninsula to San Francisco. Secondly, they are also 
concerned that property values in their neighborhoods will go down as a 
result of this. He said that any economic benefits to San Francisco 
derived from increased traffic and operations will have to be considered 
along with the adverse impact on property values. The depreciation effect 
has been substantiated by studies throughout the country and is conceded 
in the first draft of the report. 

Minutes, October 2, 1990, Page 9 



Mr. Treacy said that in the past Airport staff and Commission have stated 
that they would never support a noise abatement policy that simply shifted 
noise from one area to another, yet the initial draft is candid that that 
is exactly what will happen. 

Mr. Treacy urged the Commission to instruct staff to consider the impact 
on San Francisco and attempt to work, with the Noise Commitee, the FAA and 
other individuals in seeking some satisfactory solution to this problem. 

Mr. Curt Holtzinger, Airport Noise Committee, said that the executive 
summary states that what is happening is the gap departures, which carry 
the heavy 747s heading to the Pacific, would be eliminated and that 
traffic would be shifted onto a new extended runway 1 and point them up 
the Bay. The executive summary stops there. The aircraft must turn west 
over San Francisco and that is the problem the Committee is having. The 
executive summary omits that fact. 

Mr. Holtzinger said that the study projects what the noise levels will be 
under the new reconfiguration. In San Francisco the noise levels will go 
up substantially. The standard comparison in the document is if we do 
nothing this is the noise level, and if we do the reconfiguration this is 
the noise level. Another comparison is what is the noise level today. On 
that basis, the noise level at the monitors that are chosen in San 
Francisco wi 1 1 go up. 

Mr. Holtzinger said that they have tried to work with the staff and in the 
past the staff has addressed their concerns, although not to the degree 
that they would 1 ike. 

Commissioner Goosby asked if they have talked with the company that did 
the survey. 

Mr. Holtzinger responded that they attended the public hearing and talked 
with them. 

Commissioner Goosby said that he has always assumed through discussions 
that aircraft would continue up the Bay past the Golden Gate Bridge and 
turn left when it got out over the ocean. 

Mr. Holtzinger said that they have asked the FAA to fly that pattern since 
the aircraft began flying over their neighborhoods in early 1986 and 1987 
and the FAA told them that they could not do that. Quoting from the study 
he said that "... Each of the alternatives that provide a large reduction 
of the noise impact area in the San Bruno gap achieve the reduction by 
changing runway utilization, i.e. shifting long haul operations from 
runway 28 to runway 1." He said that aircraft will be diverted from the 
gap, which is where the original Mills Field pointed, thus shifting noise 
from traditional neighborhoods into neighborhoods that have traditionally 
been quiet. Continuing to quote from the report, Mr. Holtzinger said ... 
"It can be anticipated that the frequency of flights over San Francisco 
will increase." In reference to another study, "A considerable amount of 
aircraft noise could be moved from the Mi librae/ Burlingame area to a new 
runway 1, i.e. up the Bay and over San Francisco. And further, with the 
potential for increasing overflights over San Francisco." Finally, when 
it refers to the four scenarios which are put forward for further study it 
states that overflights will increase in San Francisco. They further show 
that these aircraft cannot reach an altitude where the noise would be 
significantly less. These are big, heavy aircraft. 

Commissioner Goosby assumed that they cannot reach that altitude fast 
enough. 

Commissioner Mattison assumed that the differential might be 1,000 feet 
and they'd be at 4,000 feet by the time they reached Treasure Island. 

Minutes, October 2, 1990, Page 10 



Mr. Holtziner said that he doubted that they'd be at 4,000 feet. 
Interpolating from the data they would be at from 3,500 to 4,000 feet 
across San Francisco. 

Mr. Mattison assumed that if they did go further north, by the time they 
reached San Francisco and the Golden Gate Bridge they would be at 4,000 or 
higher. 

Mr. Holtziner said that they may be. He said that one of the problems the 
Committee has with the study is that those issues are not addressed and 
the FAA's original response was they can't get involved in this and make 
any agreement. The FAA will not commit to putting the larger aircraft 
onto runway 28 and not turning them left until they are well above the 
Golden Gate. That would be acceptable to the Committee. The FAA has been 
asked to do that with the current configuration and they responded that 
they could not do it. 

Mr. Holtziner said that the study incidates that these aircraft could not 
get high enough to reduce the noise significantly. 

Mr. Holtziner said that there is also a safety issue involved with 
aircraft going through the gap, however, the gap is much less densely 
populated than San Francisco, one of the most densely populated cities in 
the country. Which is better from a safety perspective is difficult to 
say. 

Commissioner Murphy said that if x is the present amount of noise in the 
effected areas of San Mateo County, Mr. Holtziner seems to be telling the 
Commission is that there will be approximately x here which is counter 
intui ti ve . 

Mr. Holtzinger said that it will not reach the same levels as in San Mateo 
County, however, it will increase the amount of noise San Francisco 
experiences today. The 1986 scenario was up to 4 decibles. The southern 
monitors are now up to about 62 and the more northern neighborhoods are 
about 52 or 53. 

Commissioner Murphy asked what the noise levels are in San Mateo County. 

Mr. Holtzinger responded that some of those monitors register in the 60 
range. It is probably higher through the gap ... around 67 or 68. 

Mr. Holtziner said that the Committee was told that this study is to abate 
noise and the goal of the Commission is to have a zero population impact 
under State regulations. Another way to achieve that goal is through 
insulating the 4,000 impacted homes. Were this Commission to commit to 
insulating the 4,000 homes currently within the 65 cnel , under State law 
the Airport will have zero impact and it would be significantly less 
expensive than this proposal. 

Commissioner Goosby asked if the people in the effected Peninsula 
communities were satisfied with the insulation program. He said that 
insulating the home does not help outside activities. 

Mr. Holtzinger said that he serves on the Roundtable as the Board of 
Supervisors representative and while he hesitates to speak for people on 
the Peninsula his general impression is that they look favorably on the 
insulation program. One member from his Committee raised the question 
about the program's effectiveness and the response from both the public 
and members of the Roundtable was that they were very in favor of it. He 
added that Burlingame and Mill brae are behind runway 1 and may not benefit 
very much from it as the backblast issue has not been addressed and 
aircraft on that runway point their tail end in their direction. 



Minutes, October 2, 1990, Page 11 



Mr. Turpen said that the runway reconfiguration study is in its first 
phase of an effort to identify whether there is any physical 
reconfiguration of runways which would reduce the noise impact to zero for 
those homes in the 65 cnel area. As Mr. Holtziner correctly stated, four 
alternatives were identified as accomplishing that. The next step will 
evaluate those alternatives environmentally and costwise. At this point, 
because of the concerns raised about minimum crossing altitudes, 
differences in levels and the resulting differences in noise, staff has 
agreed to conduct, along with the consultant, further analyses into those 
questions. He said that this months meeting of the Airport Community 
Roundtable Subcommittee was cancelled. It was at that meeting that 
questions were to be formulated and transmitted to him, and ultimately to 
the consultant so that the consultant might return to the Roundtable with 
his answer in December. He expected that it would be January before the 
consultant would have the opportunity to respond to the Community. He 
said that some of those issues have been raised by Mr. Treacy and Mr. 
Holtziner. Lastly, he would not expect the Roundtable to make a 
recommendation to the Airport's Commission as to whether or not to proceed 
with the next phase of the study until some time in the first quarter of 
1991. 

Mr. Turpen, wanting to put this in perspective, said that this is just a 
study. Once the study concludes, and, if it jumps all the hurdles and the 
Commission wishes to continue, then the study would go into a master plan 
process. An environmental process would follow the master plan. This is 
not the environmental process. We are simply trying to get all of the 
facts on the table so that informed constituencies can make 
recommendations to the Commission. The Commission, as previously 
indicated, would be responsive to those constituencies in the final 
analysi s. 



J. CORRESPONDENCE: 

There was no discussion by the Commission 



K. ADJOURNMENT: 

There being no further calendared business before the Commission, the 
meeting adjourned at 9:45 AM. 





an Caramatti 
Commission Secretary 



Minutes, October 2, 1990, Page 12 




CITY AND COUNTY M V J-I M OF SAN FRANCISCO 



AIRPORT NOISE COMMITTEE 

1275 Market Street, Suite 133D • Sax. Francisco 94102 

August 16,1 990 

Mr. John Cos! as 

San Francisco International Airport 

San Francisco, California 94128 

Subject: Runway Reconfiguration Study 

Phase 1 Report June 1990 

Deaj Mr. Cosfas, 

In response to the Draft Runway Reconfiguration Study, prepared by the 
Greiner Team, the Airport Noise Committee submits the following 
comments. Although these comments have not been reviewed and 
approved by the San Francisco Board of Supervisors at this time; the remarks 
that follow will form the basis of the Committee's advisory 
recommendation to the Board. 

During the process which has led to the release of the Draft Study, the 
Committee stated its concerns to you and members of the Greiner Team on at 
least two occasions. These concerns were that the aircraft noise which affects 
San Francisco neighborhoods be addressed; and that any proposed 
reconfiguration provide for a genuine noise reduction which could be 
supported by all noise impacted communities. Unfortunately, the Committee 
finds that the four alternatives proposed in the Draft Study (D2, G2, J & K), 
fail on both accounts. 



SUMMARY AND OVERVIEW OF COMMENTS 

The primary objective of the Reconfiguration Study is the elimination of 
incompatible land uses within the 65 CNEL contour, as defined by the State of 
California. In addition, secondary objectives include the reduction of noise 
levels and overflights in areas outside the 65 contour, (page 1-2) While the 
Committee strongly supports efforts to reduce noise, it concludes that the 
proposals outlined in the Draft Study represent a noise shift. Under each of 
the proposed reconfigurations, noise is reduced inside the contour and 



Page 2 

increased outside the contour; most notably over the City and County of San 
Francisco. We believe that such a noise shift is contrary to 
Airport policy and interests. 



NOISE IMPACT CONCERNS 

The Draft Study states that the alternatives studied "...address current noise 
impact concerns" and "seek to reduce noise levels" in the communities of 
Millbrae, Burlingame, San Bruno, South San Francisco and Foster City, (page 
3-5) Conspicuously absent from this list is San Francisco; although noise 
levels in many neighborhoods of the City are equal to levels on the peninsula 
and in Foster City. ( S.F.I.A. Quarterly Noise Report, Fourth Quarter 1989) 
Clearly, the "noise impact concern" of San Francisco is not acknowledged, nor 
is any relief sought in these alternatives. 

In addition, it appears that this Draft ignores an important aspect of the study 
objective as outlined in the Request for Proposals. Specifically, the Request 
for Proposals states that it is not sufficient to simply reduce noise as 
measured by the narrowly defined primary objective. It says: 

The criteria in meeting this objective must also include: 

1) Further mitigation of single event and backblast impacts, 

and overflight impacts on communities outside the 65 CNEL 

contour. 

(Request for Proposals, S.F.I.A., June 23, 1989) 

The importance of this added criteria cannot be understated. This criteria 
insures that any noise reduction will be genuine, and not simply reduce noise 
in some areas by shifting it to other areas. The Committee understood that 
alternatives pursued for study would be required to meet this criteria, and 
seeks an explanation of why it has been ignored. Since the four proposed 
reconfigurations will increase noise levels and overflights in San Francisco 
neighborhoods, the Committee finds that they do not meet the necessary 
criteria, and should be rejected. 



NOISE IMPACT IN SAN FRANCISCO 

The Draft study shows that when compared to the "Do-Nothing 
Alternative", noise impacts in San Francisco will be increased significantly by 
the four proposed alternatives. Each alternative (D2,G2,J & K) "reduces" 
noise by extending Runways 1L and 1R into the Bay. This allows heavy long- 
haul aircraft to depart these runways, and places them over San Francisco 
neighborhoods as they head west. The Draft Study acknowledges this noise 
shift : 



Page 3 



Each of the alternatives that provide a large reduction of the noise 
impact area in the San Bruno Gap achieve the reduction by changing 
runway utilization (ie. t shifting long-haul operations from Runway 
2&RtolR. (page 6-15) 

More specifically, in describing alternatives D2 and G2, the study states that 
"...it can be anticipated that the frequency of overflights over San Francisco 
would increase. "(page 4-12). In reference to Alternative J, the study says "A 
considerable amount of aircraft noise could be moved from the Millbrae- 
Burlingame area to a new Runway 1L." and further "...with the potential for 
increasing overflights over San Francisco." (page4-16,4-17) Finally, referring 
to all four alternatives, the study says "...overflights would increase in San 
Francisco." (page 6-17) Furthermore, the study shows that the heavy, loud, 
long-haul aircraft departing these runways would not reach an altitude over 
San Francisco so that noise levels could be lowered, (page 6-18) 

Finally, the analyses which project noise levels at specific monitoring sites 
show that San Francisco is greatly impacted. For example, Table 6-3 shows 
that noise at monitor site 23 would increase from 59 CXEL. to over 62 CXEL 
under the four proposed alternatives. Since a 1.5 db increase in CXEL is 
considered significant, the Committee must characterize this noise increase 
as very significant. Similarly, the SEL, LEQ, and 'Time above 65 DBA' 
analyses all show that noise levels in San Francisco increase. (Tables 6-3 thru 
6-6, tables B-l thru B-4). 

As outlined above, it is clear that the proposed alternatives will increase 
noise over San Francisco. Unite the study acknowledges this fact, it offers no 
suggestions on how this increased noise might be abated. In fact, the Greiner 
Team claims it can not suggest ways to mitigate these impacts, since flight 
paths (overflights) are the jurisdiction of the FAA. (page 6-17) This 
acknowledgement of responsibility for increasing the noise problem and 
disavowal of responsibility for seeking solutions is not adequate. For a 
project of this scope, the FAA can and must be consulted and involved as 
needed. Frankly, the Committee finds it appalling that the increased noise 
impacts created by these reconfiguration alternatives are so easily dismissed. 
It is unacceptable to offer no mitigation for the noise increases resulting from 
runway reconfigurations which are supposed to reduce noise. 



CAPACITY 

The Draft Study shows that under each of the four alternatives, the airfield 
capacity is increased. ( Table 1-1) However, while comparative terms are used 
to describe the resulting increases, no actual data are provided. The 
Committee believes that this deficiency should be corrected, and the resulting 
increase in number of operations per hour for both VFR and IFR conditions 
provided. Finally, the Committee notes that the alternative proposals which 
extend Runway 1 and build a new parallel Runway 28 are the same as 



P2ge4 

proposals made in the "Task Force Capacity Study " of December 1987, the sole 
goal of which was to increase capacity. 



SAFETY 

The Draft Study claims that safety is enhanced by having the heavy, long-haul 
aircraft climb over the Bay rather than through the San Bruno Gap. (page 4- 
12) This claim is unsubstantiated, and open to question, since the 
transoceanic aircraft will turn to the west and cross over densely populated 
aje2S of San Francisco while in a climbing posture. Based on information 
provided in the study, B-747 aircraft would barely reach an altitude of 3500 
feet before crossing San Francisco neighborhoods. ( interpolation from data 
provided on pages 6-17 & 6-18) Finally, the study concludes that maintaining 
the existing runway system does not enhance safety, although no evidence is 
provided to indicate that it is unsafe. 



ECONOMIC CONSIDERATIONS 

The Draft Study states that as a result of lower noise levels, communities can 
expect "...increased property values, improved land use opportunities and an 
improved quality of life." (page 6-39) Conversely, the report acknowledges 
that aircraft noise has a negative impact on the value of residential property, 
and estimates that decrease at approximately 1.5 percent for each decibel 
increase in DNL. (page 6-40) This is consistent with other studies which have 
shown decreases in value from .5 to 2.5 percent for each decibel increase in 
noise. (FAA Report no. FAA-EE-85-2, "Aviation Noise Effects", March 1985) 
Based on the noise increase projected for San Francisco, the Committee 
believes there could be a substantial impact on residential property values. 
This impact should be quantified and reflected as an economic cost of the 
project. 



COMPUTER NOISE MODELING 

Conclusions in the study are based oh computer modeling of existing and 
future noise impacts. A review of information about the model used in the 
study reveals several concerns. First, Exhibit 2-2, which shows flight tracks 
used in the model does not indicate the flight tracks of aircraft arriving over 
San Frandsco. This flow of aircraft traffic is from the northwest to the 
southeast, almost directly counter to departure track DT 4. Second, the table 
on page 6-8 indicates that the model used a figure of 86. 6 percent for 
departures on Runway 1. This figure is based on existing conditions and 
there is no indication that the utilization rates are altered to reflect conditions 
under each of the proposed alternatives. With the extension of Runway 1 
into the Bay, it seems likely that the utilization rate for Runway 1 would 
increase over existing conditions. Third, Table 6-1 shows that the noise level 
projected at Monitor 26 is 4.5 decibels lower than actual readings. The report 



Page 5 

stales that this discrepancy is "...most likely due to aircraft operations from 
other local airports and limitations of the IXM." (page 6-4). Since this 
discrepancy affects all noise levels projected at Monitor 26, the Committee 
finds the explanation to be inadequate; and believes the model should be 
adjusted to more accurately reflect actual noise readings. Finally, it is unclear 
to what extent the input data is changed to reflect each of the alternatives. 
The description of each alternative should include a clear explanation of how 
the computer model was adjusted to reflect actual operating conditions. This 
should include changes in runway utilization rates, changes in runway 
utilization by aircraft type, changes in capacity and changes in flight tracks and 
altitude resulting from the alternatives. 



CONCLUSION 

The Draft Study shows that under the "Do-Nothing Alternative" the noise 
impact area will be reduced by approximately 33 percent in the year 2006 . 
(page 6-22) The CNEL grid point analysis also shows that unlike the four 
proposed alternatives, this option will provide for the gradual reduction of 
noise levels at all monitoring points. (Table 6-4, Quarterly Noise Report, 
Fourth Quarter 19S9). In light of this information, the Committee believes 
that the expense of further study and possible construction for a project of this 
scale requires close scrutiny and extensive justification. 

The Airport Noise Committee strongly supports efforts to reduce noise 
caused by San Francisco International Airport. As demonstrated above 
however, the Draft Study shows that the four proposed alternatives (D2, G2, J 
& K ) achieve "noise reductions" by shifting noise from one place to another. 
The Committee believes that such a shift is inconsistent with Airport policy 
and interests. Moreover, these alternatives do not reduce noise impacts 
outside the narrow confines of the 65 CNEL contour, as is called for in the 
Request for Proposals. 

The Committee hopes that these comments will be helpful in improving the 
report and that our concerns will be adequately addressed. If you have any 
questions please feel free to contact me so we may discuss these concerns 
further. 



Sincerel 




Timothy Treacy, Chairman 
Airport Noise Committee 

cc: Hon. Art Agnos, Mayor, City and County of San Francisco 
Hon. Jim Gonzalez, Board of Supervisors, San Frandsco 
Morris Bernstein, President, Airports Commission 
Lou Turpen, Director of Airports 
Roger Chinn, Chairman, Airport Community Roundtable 



r 

45 

2 



/ 



SAN FRANCISCO 



^ 



AIRPORTS COMMISSION 




dec; 



MINUTES 



October 11, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L G00SBY 

Vice President 

SHARON B. DUVALL 

PATRICK A. MURPHY 

J. STANLEY MATTISON 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 







Index 










of the Minutes 










Airports Commission 










October 11, 1990 










Special Meeting 






CALENDAR 


AGENDA 




RESOLUTION 




SECTION 


ITEM 


TITLE 

CALL TO ORDER: 


NUMBER 


PAGE 


A. 




2 


B. 




ROLL CALL: 




2 



C. ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Reject All Bids - Contract No. 
2224 - International Terminal 
Pavement Slurry Seal 90-0 1 79 

2. Award of North Terminal Crab and 
Seafood Kiosks - Tan Enterprises, 

Inc. 90-0 1 80 



E. NEW BUSINESS: 3 

F. CLOSED SESSION: 

The Airports Commission will go 

into closed session pursuant to 

Government Code Section 54956.9(c) 

in order to confer with legal 

counsel to decide whether or not 

to initiate litigation. 3 

G. ADJOURNMENT: 3 



Minutes 

of the 

Airports Commission Meeting 

October II, 1990 
Special Meeting 



CALL TO ORDER: 

The special meeting of the Airports Commission was called to order at 
5:35 P.M., I0I Grove Street (Department of Public Health), Room 300, San 
Francisco, CA. 



B. ROLL CALL: 

Present 

Absent : 



Morris Bernstein, President 
Sharon B. Duval I 
Patrick A. Murphy 
J. Stanley Matt i son 

Z.L. Goosby, Vice President 



C. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners; 



D. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. 

I . Rejection of All Bids - Contract No. 2274 - International Terminal 
Pavement Slurry Seal 



No. 90-0 1 79 



Resolution rejecting the bid of 

0' Grady Paving, Inc. in the amount of 

$167,350.00 



2. North Terminal Crab and Seafood Kiosks - Tan Enterprises, Inc. 



No. 90-0180 



Resolution awarding the North Terminal 
Crab and Seafood Kiosk Lease to Tan 
Enterprises, Inc. in the amount of 
$168,808.00. 



Minutes, October II, 1990, Page 2 



E. NEW BUSINESS: 

There was no discussion by the Commission. 



* * * 



F. CLOSED SESSION: 

Pursuant to Government Code Section 54956.9(c), the Airports Commission 
went into closed session at 5:40 PM to confer with legal counsel to decide 
whether or not to initiate litigation. 



* * * 



G. ADJOURNMENT: 

There being no further calendar business before the Commission, the 
meeting adjourned at 7:15 PM. 




^iM^- 



Commission Secretary 



Minutes, October II, 1990, Page 3 



r 
H5 



Mr SAN FRANCISCO 
AIRPORTS COMMISSION 




D ocr DEPT - 



MINUTES 



s>& NOVEMBER 20, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L G00SBY 

Vice President 

SHARON B. DUVALL 

PATRICK A. MURPHY 

J. STANLEY MATTISON 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

November 20, 1990 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER: 


B. 




ROLL CALL: 



RESOLUTION 
NUMBER 



PAGE 
3 

3 



ADOPTION OF MINUTES: 

Regular Meeting of 
October 2, 1990 and 
Special Meeting of 
October 11 , 1990 



ANNOUNCEMENT BY SECRETARY: 



90-0182 



DIRECTOR'S REPORTS: 

October 22, 1990 Start-Up of 
Airport Information Booth 
Program 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Canadian Airlines International, 

Ltd., Christmas 1990 and Easter 

1991, Additional Flights 90-0183 

Intent to Award Self-Service 
Luggage Cart Agreement 

Modification of Bond Consultant 
Contracts 90-0184 

90-0185 
90-0186 

Adoption of Increases in Public 

Parking Rates 90-0187 

Modification for Professional 

Services Contract for Contract 

No. P39 - Evaluation and 

Improvements of Security 

Systems 90-0188 

Award of South Terminal Cigarette 
Vending Lease 90-0189 



4-5 

5 



5 

6-12 

12 

12-15 

15 
15 



90-0193 


16 


90-0194 


16 


90-0195 


16 


90-0196 


17 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

8. $19,295,772 Supplemental 
Appropriation to Fund 

Approved Capital Projects 90-0190 15 

9. Bay Area SuperShuttle Rental 

Credit for Bus Stop Shelters 90-0191 16 

10. Bid Call - Contract No. 2367 - 
International Terminal Underground 

Water Tank Replacement 90-0192 16 

11. Bid Call - Contract No. 2375 - 
Emergency Pavement Repairs - 
1991 

12. Design Approval - North Terminal 
Crab and Seafood Shops 

13. Design Approval - North Terminal 
Candy Shop 

14. Resolution Ratifying Personnel 
Actions 



PUBLIC HEARING: 

15. Hearing on In-Transit Lounge Fee 17 

16. Hearing on Proposed Amendments 
and Additions to the Airport's 
Rules and Regulations Pertaining 

to Taxicabs 17 

NEW BUSINESS: 

Congratulations to Mr. Turpen 

on Success of Combined 

Charities Campaign 17-18 

Refurbish Hotel/Motel Display 

Board 90-0197 18 

CORRESPONDENCE: 18 

ADJOURNMENT: 18 



Minutes November 20, 1990, Page 2 



Minutes 

of the 

Airports Commission Meeting 

November 20, 1990 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 

Absent: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Patrick A. Murphy 
J. Stanley Mattison 

Sharon B. Duval 1 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of October 2, 1990 and the special 
meeting of October 11, 1990 were adopted by order of the Commission 
President. 

No. 90-0182 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced that by 
a 3-1 vote, with Commissioner 
Bernstein casting the dissenting vote, 
the Airports Commission adopted 
resolution no. 90-0181 directing 
Director of Airports to engage legal 
counsel to challenge the validity of 
Proposition D on the November 6, 1990 
San Francisco General Election Ballot 
and the procedures placing it on the 
ballot, at the Special Meeting of 
October 11 , 1990. 



Minutes, November 20, 1990, Page 3 



E. DIRECTOR'S REPORTS: 

1 . October 22, 1990 Start-Up of Airport Information Booth Program 

Mr. Lou Turpen, Airport Director, explained that this program was 
designed to provide information to arriving passengers. During the 
first ten days of operation almost 12,000 people sought assistance at 
the booth, many in languages other than English. Presently, four or 
five languages can be utilized at the booth with a direct link for 
another 100 languages through a special AT&T system. He said that 
the booth is working very well. 

Mr. Turpen said that the Mayor's Office of Business Development 
intends to incorporate some activities which are currently available 
in San Francisco to make the booth a more generic visitor center. 

Commissioner Goosby asked what the cost will be. 

Mr. Sheldon Fein, Landside Operations, responded that labor costs 
will run about $500,000 a year with $100,000 to $150,000 for printing 
costs for brochures. 

Commissioner Goosby asked if this was done by RFP or bid. 

Mr. Fein responded that it was a request for proposal. Outlines were 
submitted by proposers describing proposed management systems. 

Commissioner Goosby asked what the percentage of domestic passenger 
use would be. 

Mr. Fein said that staff will prepare statistics by terminal as well 
as by type of service. 

Commissioner Goosby assumed that the operator will be expected to 
meet certain Human Rights Commission affirmative action standards. 

Mr. Fein said that the contract was set up for MBE participation. 

Commissioner Goosby said that domestic passengers will comprise the 
greatest percentage of users. This booth will be the first glimpse 
of the workings of San Francisco government, with the person behind 
the counter representing San Francisco. He hoped that would be kept 
in mind as hiring practices are assessed. He did not feel it 
necessary that all employees speak a foreign language. 

Mr. Fein told Commissioner Goosby that this is an MBE firm. 

Mr. George England, Luxor Cab Company, said that for some time they 
have been communicating with staff and the Commission about how to 
improve the situation for taxi drivers as well as the taxi riding 
publ ic at the Airport. 

Mr. England said that he had information sheets given to him by 
Information Booth personnel. He said that taxicabs are a very viable 
part of the transportation system at the Airport yet the information 
sheet he was given listed taxicabs last. He noted that there are 
phone numbers and fare information as well as instructions on where 
to find these carriers. Information on taxicabs only lists a $24.00 
fixed rate fare divided by the number of passengers. He was 
concerned thatno one contacted either of the taxicab organizations of 
which he is a member ... the Cab Drivers Association and the United 
Taxi Workers ... about the kind of information the public should 
receive about taxicabs. The people who are providing the service 
should have some input on it. He felt it was an on-going effort to 



Minute-. November 20, 1990, Page 4 



exclude cabs. He said that he has been before the Commission at 
previous meetings about the way the cabs flow through the Airport. 
There is a lack of continuity in the way the system operates. 

Mr. England said that he would like to see a breakdown on the rates 
sheets. All the rates listed are for per person fares except for 
cabs which is per vehicle. Up to five people can travel in a cab for 
that same $24.00. If that information is presented most people will 
determine that a cab is fairly inexpensive transportation and 
probably the most expedient. He said that people are assuming that 
because every other listing is based on a per person basis that the 
$24.00 cab fee is per person as well. 

Mr. England said that the cab drivers are trying to get the Police 
Commission to place the breakdown inside taxis or outside taxis. If 
four people travel together the fare is $6.00 per person which 
compares favorably with the Airporter bus. 

Mr. England requested that the taxi groups and cab drivers be allowed 
to input into the kind of information that should be presented. 

Mr. Fein explained that after the first couple of days of operation 
the information sheet was reprinted for each area. The section on 
taxis reads "Taxis $17.00 to $32.00. SF0 stops, lower level, yellow 
column, outside baggage claim, all terminals. Shared ride, $24.00 
divided by the number of passengers up to 3 designation. $17.00 to 
the Cow Palace, $28.00 to Fisherman's Wharf." He said that it also 
their intention to rotate the order of ground transportation 
operators listed on the sheet every couple of weeks. The same 
information is listed for each county. 



F. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 2 was adopted unanimously. 

2. Canadian Airlines International, Ltd., Christmas 1990 and Easter 
1991 , Additional Flights 

No. 90-0183 Resolution approves additional 

round-trip flights, SFO/Vancouver for 
Christmas 1990 and Easter 1991; two on 
December 22 and 23, 1990, and two 
during the week of March 1991. 

Mr. Turpen said that Canadian operates under a variance from the 
Airports Commission for the 25 percent rule. Their variance was 
granted with the full understanding that they will be 33 percent in 
in compliance by October, 1991 and by almost 70 percent a year later. 

Mr. Turpen said that Canadian has asked for two additional flights in 
December and two in March, corresponding with holiday periods. The 
flights will operate with Stage 2 aircraft, however they will be 
daytime operations. He said that it would serve the public interest 
to have these seats available during these holiday periods. 

Minutes, November 20, 1990, Page 5 



Item No. 3 was put over to the December 4, 1990 meeting. The following is 
a verbatim transcript of Item No. 3. 

3. Intent to Award Self-Service Luggage Cart Agreement 

Resolution of intent to award self- 
service luggage cart agreement to 
Smarte Carte, Inc. 

COMMISSIONER BERNSTEIN: There are two speakers. Mr. John Boos of 
Petit and Martin. Would you like to say something on that? 

MR. JOHN BOOS: With Petit and Martin of San Francisco on behalf of 
Quality Vending. The Commission is aware that this contract has been 
a very contentious one and has involved a great deal of litigation so 
far. The Commission's award has been vacated by the courts and the 
courts have essentially held, Judge Brown, that in a contract like 
this the bidding procedure must be absolutely above-board, 
scrupulously fair by all standards in order to pass muster. And, I'm 
here to tell you today that based on the documents I have seen, there 
is reason to believe that the court would disapprove the award of the 
contract that is contemplated today. 

What I'm asking the Commission to do, respectfully, is to continue 
their consideration of this resolution to allow us and the other 
interested parties an opportunity to make a written presentation to 
set forth all of the reasons we believe that this contract award 
which is contemplated would not stand judicial scrutiny. 

You should be aware that my clients, Quality Vending, were informed 
only by telefax last Thursday about this meeting today. They were 
invited to bring their equipment, which they are very proud of. It's 
new equipment and they wanted to highlight that equipment as a major 
reason in their favor for the contract to be awarded. There hasn't 
been enough time to get the equipment here. Smarte Carte is the 
incumbent and obviously they have an advantage in terms of presenting 
their equipment. Nor have we had a full and fair opportunity to 
fully investigate the Commission file on this matter. That's 
important because from what we have seen so far of the staff report 
to the Commission, it is clear that there is a fundamental flaw in 
the bid documents. A fundamental misunderstanding. There may be 
more but it is obvious to us from Ms. Gittens reports that the City 
either misinterpreted its own requirements or is operating on a 
different wave length from the other bidders. If I could show you 
just one example of what I'm talking about. 

I refer to Proposal A which is part of the RFP. And, specifically, I 
refer to Item No. 1 in which the bidders are called upon- to state the 
price of a single cart to the public in all areas of the Airport 
except the International Terminal customs area. In other words, the 
so-called pay carts in the domestic areas. 

Item two calls for the bidder to say what refund, if any, you will 
provide to the public for each cart returned. The crucial point I 
want to make is that this number two does not contain the modifying 
language except the International Terminal customs area. In other 
words, the bidder, certainly Quality Vending, is given to understand 
that if there is to be a refund to the public it must be on all carts 

COMMISSIONER GOOSBY: Even the International Terminal. 



MR. BOOS: Yes, sir. On all carts. For example, that's the case as 
I understand it in Los Angeles. 

Minutes. November 20, 1990, Page 6 



COMMISSIONER MURPHY: How do you give a refund to somebody who never 
paid you anything? 



MR. BOOS: It's the same principle that you have in Los Angeles 
Airport. It also applies here in San Francisco. 



COMMISSIONER MURPHY: Los Angeles has free carts but you get a 
quarter if you give them back. 



MR. BOOS: That's right. Another thing ... 
COMMISSIONER GOOSBY: You mean they just give a quarter away? 
MR. BOOS: No, the quarter is a reward, if you will ... 
COMMISSIONER GOOSBY: To return the cart. 



MR. BOOS: To return the cart and make life easier for the operator 
to avoid having to chase down in parking lots and so forth for 
carts. Here, of course, as things stand, there's no telling that the 
person who returned the cart is the same person who rented the cart 
in the first place. There are people who hang around airports and 
make extra quarters that way. So, it is not a direct relationship 
there. The point is that my client, Quality Vending, and for all we 
know, other bidders as well, operate on the assumption that the 
refund must be available, must be given to everyone. And this means 
big dollars because we're talking about, according to the Airport's 
projections, 1,500,000 international arrivals using carts. If you 
give a quarter to every one of those you're talking almost $400,000. 
Now, this was built into Quality Vending's bid and it effected all of 
the numbers in Quality Vending's bid, including the price that we 
proposed charging to the City for the use of the international 
carts. Now, here's the problem - when you get the Commission's memo 
and you crunch the numbers, it is clear that the City understands 
this to mean a refund only for so-called paid carts. There is a 
fundamental divergence here of what paragraph two means. It's 
affected our bid, it may have affected other bidder's bid. It means, 
in effect to us, that we have to allocate more money to rebate to the 
public which makes less money available to rebate back to the City. 

Now, those of you who recall the litigation here I think. will agree 
that Judge Brown's view is that far less than this kind of divergence 
is cause to throw out the contract entirely. The court has set a 
very high standard here. 

There is another thing that I want to point out as well. In the 
staff memo ... I'm sorry, in the RFP the bidders are told that the 
domestic cart usage has actually been dropping over the past years. 
The trend is from 484,000 in 1987-88, down to 458,000 in 1988-89, 
down again 449,000 in 1989-90, but in the staff report recommending 
this resolution we are given to understand that the City actually 
projects a seat change from reversing the decline and actually going 
up to 635,401. We don't understand where that number came from. We 
are concerned that it reflects information that may not have been 
made available to all bidders about recent trends in cart usage. 
These are only examples. 



Minutes, November 20, 1990, Page 7 



The lesson from the court is clear that this contract will not stand 
judicial scrutiny unless it is fully above board. We believe there 
are significant questions about unfairness to bidders. We want those 
questions answered. We want an opportunity to make a presentation 
before the Commission even deals with an intent to award this 
contract. And, without belaboring my presentation, let me point out 
something else if I may here about competition. We're in favor of 
competition. We in favor of fair competition. We remind you that in 
the days when there was no competition to Smarte Carte, remember what 
happened then. Smarte Carte's bid went up from $1.00, charging to 
the City for the international arrivals, up to $1.25. You recall the 
Commission said no, we reject that, that's too high. And then what 
did Smarte Carte do after that? They came back with the same number. 
The same number and the message was, we've got you where we want 
you. We've got no competition, you're stuck with us, we'll charge 
you whatever we want. Then, Quality Vending and others came on the 
scene and suddenly the trend goes all the way down. Last year Smarte 
Carte wanted $1.25, now they say we'll give it to you for 70g. So 
competition's a good thing. We want a full and fair opportunity. We 
think it'll benefit the City. We think we've already benefitted the 
City by bringing Smarte Carte down to earth. 

Thank you, very much. 

COMMISSIONER BERNSTEIN: Mr. Parker, Smarte Carte. 



MR. RICH PARKER: Good morning, I'm Rich Parker from Smarte Carte. 
First of all I would like to correct some very strong statements that 
Mr. Boos made, one of which was regarding the price of carts in Los 
Angeles. Carts in the Los Angeles customs hall are rented for $1.00, 
there is a 25# return to the passengers. 

I'd just like to say how pleased we are to be here today and to thank 
you for the careful review of our equipment and our proposal. We 
highly value our partnership with the San Francisco International 
Airport and are dedicated to serving your interests. We have 
responded with not only a very financially attractive proposal for 
the City but also, I believe, we met or exceeded the other evaluation 
criteria of the proposal requirements. 

As you may know, our proposal calls for the installation of all new 
equipment - that will be provided. In addition, we know that the 
Airport has been asking for certain modifications to the pushcart. 
We are prepared to make those modifications as requested and to do it 
within the time frame specified. I want to assure you that Smarte 
Carte can and will complete and do the job here for the San Francisco 
passengers as well as for the Airport. 

I know there is a busy agenda today. I want to just take a moment to 
introduce Tony Lau. Tony Lau has been our manager for the last ten 
years that we have been operating here in San Francisco. He brings 
to San Francisco a quality that might not be easy to fit into an 
operation such as ours. He has the experience and the manpower able 
to complete the work that needs to be done in serving the passengers 
here in San Francisco. 

That's all I have. Thank you for your time today. If chere are any 
questions I'll certainly be prepared to answer them. 



COMMISSIONER G00SBY: If you had interpreted that paragraph about the 
25£ refund do you think your bid would ... as not applying ... in 
other words, you interpreted your bid that that did not apply to 
international passengers. If you thought it also applied to 



Minutes, November 20, 1990, Page 8 



international passengers do you think it would have effected the 
amount of money you bid? 



MR. PARKER: No sir. I don't think we saw any kind of ambiguity 
there at all. We felt it was easy to understand. 



COMMISSIONER GOOSBY: I didn't ask you that. I said that if you had 
interpreted it where the international passengers were also going to 
give that 25# back, would it have effected it ... would you have 
interpreted it like the other firm claims that they did. 



MR. PARKER: I don't. 

COMMISSIONER GOOSBY: You don't think that it would effect your 

MR. TURPEN: Angela? 



ANGELA GITTENS: Let me just clarify a particular point on the refund 
of international passengers. The reward is available for all 
passengers if they return their carts anywhere but right in front of 
the International Terminal, lower level. If they return the cart on 
the upper level anywhere or in the domestic terminals, lower level or 
on the roadway they do get the refund. So some portion of the 
International Terminal passengers who have received a cart for free 
may return the cart or have someone return the cart and get a 
refund. There's some amount that does get spent. 



COMMISSIONER MURPHY: Let me ask the basic question. As I understand 
this, you come into the International Terminal, you get your free 
cart, you collect your bags, you go through customs, you can take 
your cart out the door, and, if, for example, you decide to take a 
shuttle service into town you go upstairs, park your cart, get your 
quarter. 



MS. GITTENS: That's correct. 

MR. TURPEN: Anywhere on Airport. The carts were ... the system 



MS. GITTENS: Unless you return it right in front of the 
International Terminal, lower level. Those machines do not give 
rewards. 



MR. TURPEN: The system was specifically designed not to restrict the 
use of the cart. Other places you have to give up the cart as soon 
as you walk out the door of customs. What good is the cart? You 
useit for 60 feet. So, the Commission's original intent was, we want 
the cart to be unrestricted in terms of going to the garage, going to 
the South Terminal, making an airline connection, whatever you want 
to do. 

COMMISSIONER GOOSBY: With barriers up you couldn't get them out. 
Minutes, November 20, 1990, Page 9 



MR. TURPEN: Right. That was all rejected after about 73 different 
looks at it. I think the issue here is, I believe ... Ang, if you 
could comment on the proposal before the Commission on the 70£. That 
70?! was a figure to the Airport which understood that there could be 
as much as a 250 per cart refund. Is that right? 



MS. GITTENS: Well, that's a matter in the mind of the bidder, which 
we are not involved in. I don't know what each bidder assumed as to 
how much in refunds they would have to give. 



COMMISSIONER GOOSBY: 
about many . . . 



Assuming that because they would have to guess 



MS. GITTENS: They would have to guess just like we would, 



MR. TURPEN: A percentage. Exactly right. Zero to 100% 



MS. GITTENS: The operation, I believe, is clear as to how it now 
operates and how it is intended to operate. 



MR. TURPEN: The Commission h 
Choice no. 1, this is an inte 
followed up by an award. At 
this, indicating clear intent 
Commission can, because at th 
this over for two weeks and a 
another look at the numbers a 
the Commission and the unders 
those that we are communicati 
alternative unless the Commis 
thi s go forward now. 



as a couple of choices as I see it. 
nt, a resolution of intent to award, 
some later date the Commission can pass 
to award and come back. Or, the 
is point I see no down side to putting 
1 lowing staff to sit down and take 
nd insure that the representations to 
tandings of the bidders are, in fact, 
ng to you. I would prefer the second 
sion has some overriding concern that 



COMMISSIONER MURPHY: I think I would prefer that we kick this over a 
couple of weeks and give the staff a chance to come back to us with 
more detai 1 . 



MR. TURPEN: That would be our preference, sir 



COMMISSIONER MURPHY: For what it's worth, my inclination, unless 
you've got a real story to tell, would be to go ahead with the intent 
to award the bid at that time. I think the proposal is pretty clear 
as I understand it but I'd like to make sure that we understand this 
current issue and give Quality a little ... 



COMMISSIONER MATTISON: I'd like just one bit of insight into the 
dialogue between staff and the bidders. I'm assuming that this 
package just didn't show up in the mail one day and that was the 
entire process. There seems to have been a tremendous dialogue over 
a long time among the bidders and staff. 



COMMISSIONER MURPHY 
pleadings dialogue. 



Particularly if you call the service of 



MR. TURPEN: We had pre-bid conferences. 

Minutes, November 20, 1990, Page 10 



COMMISSIONER MATTISON: I'm surprised. There must have been 
conferences and dialogue that would have clarified this. This is a 
pretty strange misinterpretation to persist after so much dialogue 
and so many attempts at getting this thing resolved. 



MS. GITTENS: This is the third request for proposal. It has not 
changed. The operation has not changed in the I guess year and a 
half that we've been trying to get this contract proposed on and 
awarded. We had two pre-bid conferences. 



COMMISSIONER GOOSBY: And it wasn't brought out at any of those 
pre-bid conferences this particular ... 



MS. GITTENS: I believe the operation has been explained to all the 
proposers as to how we do it. 



COMMISSIONER BERNSTEIN: Why don't we put it over for a couple of 
weeks? 



MR. TURPEN: I think that would be wise. Let me just say that I'm 
gratified to see so much enthusiasm for a cart bid after so many lack 
luster years. So, I take this positive sign ... (end of side 1 of 
tape) 



MS. GITTENS: ... (beginning of side 2 of tape) ... Martin indicated 
he wanted the Commission to receive some more information. 



COMMISSIONER MURPHY: Yes. 

MR. TURPEN: And if ... and I think 



COMMISSIONER MURPHY: I would like to receive some more information 
from the staff just to make sure that this issue was available for 
discussion, what the practices of the Airport are with regard to free 
carts. 



COMMISSIONER GOOSBY: And from the company as to what difference it 
made in their figure. I would like to know what difference it made 
in their figure. Right now it looks to me like a Judge is going to 
do just what they did before, which I felt he was going to do before 
and I went along with it. 

COMMISSIONER MURPHY: I doubt it. 



COMMISSIONER MATTISON: I don't think so. I think the integrity of 
the process is really the issue and the process has certainly been 
flushed out with a lot of dialogue and I guess that's what we'll 
review in the next couple of weeks to insure that we have a process 
that we brought out that sort of interpretation. Because this sort 
of back door way of kings x - let me see what my bid would have been 
if I had known what the other guys bid was. We'd better be very 
careful with that sort of notion. 



Minutes, November 20, 1990, Page 11 



COMMISSIONER GOOSBY: As long as that question remains in the Judge's 
mind the easiest thing for him to do is just what he did before - bid 
it over again. 

MR. TURPEN: There are two things I need to share with the Commission 
... one, staff will provide for the Commission an evaluation of this 
situation. Number two, the attorneys for QVS have indicated they 
wish to share with the Commission some arguments, if you will, to 
support their position. This matter will go over for two weeks, 
which will be December 4. I would suggest that those arguments 
should be forthcoming to the Commission no later than a week from 
today in order to insure that the Commission has time prior to the 
next meeting to review those. 

MR. BOOS: We're happy to do that. 



MR. TURPEN: Those should be sent directly to the Airport's 
Commission and, if you will, copy to staff too, please. Thank you. 
Okay, we'll put this over then until December 4. 



The following items were adopted unanimously. 

4. Modification of Bond Consultant Contracts 

No. 90-0184 Modification of contracts with the 

No. 90-0185 Co-Financial Advisors, Co-Bond 

No. 90-0186 Counsels and Feasibility Consultant. 

Ms. Gittens said that this modifies the contract for work already 
done on Series E which we sold in March, and, more importantly, the 
bulk of the money will send us forward with the master resolution 
changes, the possible forward refunding of the Series D bonds and the 
Series F bonds, which will be the first bond issue of the new master 
plan. She assumed that the last issue will be sold next summer, 
assuming the EIR is completed. This is the next phase of our 
financing plan. 

Commissioner Bernstein asked if the market conditions would have any 
effect on this. 

Ms. Gittens responded that it is causing us not to move ahead at this 
time with the Series D refunding which was anticipated to happen in 
October or November. She said that perhaps we will never go forward 
with 1t. 

Commissioner Mattison assumed that it would essentially be on the 
shelf in the event market conditions allow it to go ahead. 

Ms. Gittens said that that was correct. 



Adoption of Increases in Public Parking Rates 

No. 90-0187 Resolution authorizing increases in 

the Garage and Lot D parking rates. 

Mr. Turpen said that this matter came before the Commission at the 
last meeting in the form of a public hearing. He hoped staff 



Minutes, November 20, 1990, Page 12 



responded to the Commission's concerns adequately. He reminded the 
Commission that there was no testimony at the public hearing. 

Commissioner Mattison commented that there was no change in the fees 
up to three hours . 

Mr. Turpen said that he wanted to keep the short term frozen to 
continue to encourage drivers to get off the road and into the garage. 

Commissioner Murphy asked for justification for the increase in the 
long term daily rate for Lot D. 

Ms. Gittens responded that it is essentially a "demand supressant" as 
there is very little space in Lot D. It also adds to the economic 
health of other lots around the Airport, helping them to stay open 
which, in turn, helps us. 

Mr. Turpen said that about 18-24 months ago he briefed the Commission 
on what was forcasted to be a particularly critical period in parking 
at the Airport through 1995. The difficulty would arise because 
off-airport lots are closing and the spaces are being converted to 
other uses that are more financially attractive. He said that 
although we are in a period of some difficulty there is some hope for 
optimism in some other issues with respect to on-Airport property. 
At this point we are going to be confined to those available spaces. 

Commissioner Murphy assumed that our management philosophy was 
similar to Logan Airport's which is, simply stated, you just as soon 
not have people drive and park in the long term lots. 

Mr. Turpen disagreed. He said that we have a long term plan which 
recognizes that there will always be a certain portion of the 
traveling public that will elect to drive. We've forecasted that 
demand and we've also forecasted the fact that the demand can't be 
met in the near term. However, our long term planning recognizes 
what that increment is, keeping in mind what our long term commitment 
is to mass transit. Although he thought they could be blended he 
felt that it does call for an increase in our long term parking 
availability as part of the master plan ... decking lot D. He said 
that he wouldn't say it is as extreme as a policy of denying it but 
recognizes that there is a percentage and he wants to accommodate 
that percentage without introducing any more traffic. 

Commissioner Bernstein said that the sole purpose is to increase 
revenue for the City. 

Mr. Turpen said that that was not true. 

Commissioner Bernstein said that he was against it just to raise 
prices. 

Mr. Turpen said that in 1981 he came before the Commission with a 
suggestion to raise employee parking rates from $5.00 every three 
months to $5.00 a month - rates which had not changed in 18 years. 
Since that time it has been his practice, supported by the 
Commission, to keep rates comparable to other facilities in the area 
and reflective of the increased cost of operating the Airport as well 
as to spread the rates across the broadest possible base as opposed 
to capturing them from a single sector of our revenue stream. This 
increase is reflective of that policy. It makes a minor contribution 
to the general fund but that is not the primary purpose. This action 
will keep pace with a continued philosophy the Commission has had to 
ensure that all Airport rates reflect market conditions as much as 
possible rather than to deep discount rates in specific areas only to 
double or triple them in a quantum leap at a later date. 

Minutes, November 20, 1990, Page 13 



Commissioner Bernstein commented that if the Airport wished to 
reflect market conditions the rates should be dropped. 

Mr. Turpen disagreed. He said that attachment no. 1 provides the 
rates of the Parking Authority and the downtown privately-owned 
garages as compared to the Airport garage. 

Commissioner Bernstein asked how much of an increase this would 
result in for the City. 

Mr. Turpen said that it would be about $405,000. 

Commissioner Mattison asked if the revenue would be made up in 
another area, such as landing fees, if this isn't approved. 

Mr. Turpen said that it would. He said that any major airport in the 
U.S. derives in excess of 50 percent of its revenues from the 
airlines which serve it. That has had a particularly negative effect 
in places like Miami and Atlanta, or Dallas after the Braniff 
situation. A number of airports have suffered with the airlines. 
One of the strategies we adopted in the early 80' s was to minimize 
that dependence so that now the airlines are only contributing 25 
percent to the operation of SFO compared to some 55 to 60 percent at 
other major U.S. airports. We see that as a sound fiscal strategy in 
order to preserve our ability to finance future projects. Losing a 
carrier now is almost a non-financial issue for SFO as opposed to 
other airports where they might comprise 20 - 30 percent of the 
revenue flow. 

Commissioner Murphy said that he was persuaded that the daily parking 
rates at the Airport ought to be competitive with what the City 
charges and other airports around the country. It is mainly an issue 
that relates to our fiscal soundness so that we can sell our bonds 
and continue our operations. 

Mr. Turpen said that a good example was drawn a few weeks ago when 
someone indicated that San Francisco Airport could theoretically 
could borrow, $2 . 5-bi 1 1 i on and its overall rates would still be below 
those at Kennedy. He said that this is a good indication of the 
impact of the revenue diversification strategy which the Commission 
adopted in the early 80' s. It has served us well. We are trying to 
keep a balance among the revenue sources and at the same time not get 
into a situation as we did with parking where for 10 or 15 years we 
didn't adjust the rates and then face the spectre of making some 
quantum leaps. 

Commissioner Murphy said that he was less concerned with that then in 
keeping everything in balance. 

Commissioner Bernstein did not feel that the Airport should charge 
more for the sake of charging more just so the airlines would have a 
lower rate. He said that the amount generated is almost meaningless 
to us. We don't need the money. The sole purpose of the raise is to 
generate money for the City. 

Mr. Turpen disagreed. The City derives a benefit if we open a 
concession or rent one more car. We have the highest bond rating of 
any airport without a bridge attached to it. He recommended 
supporting the increase. 

Commissioner Bernstein asked why there wasn't a separate line in the 
garage for those who pay by credit card. 



Minutes, November 20, 1990, Page 14 



Mr. Fein responded that that procedure was put into effect last year 
for a period of about three weeks. He said that irregardless of the 
signs, cars would enter the shorter lines and tie things up. Once a 
vehicle reached the toll booth it could not back up and was trapped 
in that line. He said it was a mess. 



6. Modification for Professional Services Contract No. 1739, Evaluation 
and Improvements of Security Systems 

No. 90-0188 Resolution awarding and authorizing 

modification No. 2 to agreement with 
the security consulting firm of Asset 
Protection Consultants, Inc. to 
increase compensation payable by the 
sume of $180,000.00. 

Mr. Turpen said that this is part of the overall security program 
being implemented airport-wide and is a continuation of the initial 
card reader system which was installed in the terminals. We are now 
moving to mandated systems airport-wide. The system appears to be 
very effective and we are pleased from a cost perspective as well. 

Commissioner Goosby noted that the cost is below what is being 
charged national ly. 

Mr. Turpen explained that because of the Airport's size and the way 
it's laid out we have gained some efficiencies that are lacking at 
other airports. Dallas has 18,000 acres, SF0 has 2,200 acres. 



Award of South Terminal Cigarette Vending Lease 

No. 90-0189 Resolution approving award of South 

Terminal Cigarette Vending ease to Kyo 
M. Ahn. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

8. $19,295,772 Supplemental Appropriation to Fund Approved Capital 
Projects 

No. 90-0190 

Commissioner Goosby asked if the Series A revenue bonds were 
earmarked for a particular capital project. 

Ms. Gittens responded that they will be but it will be a separate 

action. 

Mr. Turpen said that the Commission has already approved the projects 
in the Five Year Capital Plan, we just have to do some matching. 



Minutes, November 20, 1990, Page 15 



9. Bay Area SuperShuttle Rental Credit for Bus Stop Shelters 

No. 90-0191 Resolution approving rental credit to 

Bay Area SuperShuttle for payment of 
$9,843.41 to Ace Aluminum Company for 
two (2) aluminum shelters to be 
installed on the Upper Level islands 
at the North and South Terminals to 
serve patrons of door-to-door van 
services. 

Commissioner Goosby asked why the Airport couldn't afford to build 
this shelter. 

Ms. Gittens responded that it is not that the Airport can't afford 
it, but it is much faster if SuperShuttle builds it. SuperShuttle 
will receive a rental credit for the work. 

Mr. Dennis Bouey, Deputy Director for Facilities Operations and 
Maintenance, said that the Mayor now asks that projects be advertised 
from 21-30 days. A private company could conceive and build this in 
that same period of time. 

Commissioner Goosby asked if we are required to bid projects even if 
they are under a certain dollar amount. 

Mr. Bouey responded that there are two types of bids ... formal bids 
which must go before the Commission, and, informal bids which do not 
require Commission approval but must still be bid, regardless of the 
amount. 



10. Bid Call - Contract No. 2367 

International Terminal Underground Water Tank Replacement 

No. 90-0192 Resolution approving the scope, budget 

and schedule for Contract No. 2367 and 
authorizing the Director of Airports 
to call for bids when ready. 



11. Bid Call - Contract No. 2375 

Emergency Pavement Repairs - 1991 

No. 90-0193 Resolution approving the scope, budget 

and schedule for Contract. No. 2375 and 
authorizing the Director to call for 
bids when ready. 



12. Design Approval - North Terminal Crab and Seafood Shops 

No. 90-0194 Recommend approval of the proposed 

design for the North Terminal Crab and 
Seafood Shops. 



13. Design Approval - North Terminal Candy Store 
No. 90-0195 

Minutes, November 20, 1990, Page 16 



14. Resolution Ratifying Personnel Actions 

No. 90-0196 Resolution, in accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 



I. PUBLIC HEARING: 

The public hearing for Item No. 15 was convened at 9:58 AM and adjourned 
at 10:01 AM, there being no comments from the public. 

15. Hearing on In-Transit Lounge Fee 

Commissioner Goosby commented that the Airport can now institute a 
passenger facility charge. 

Commissioner Murphy asked who will pay the in-transit fee. 

Mr. Turpen responded that the airlines will pay the fee. This has 
nothing to do with the passenger facility charge. 

Commissioner Goosby asked if the airlines would tack this on to the 
ticket. 

Mr. Turpen said that he believed they would. 

Commissioner Goosby thought that some airports already imposed a 
passenger facility fee. 

Mr. Garibaldi responded that up until now such a fee has been illegal 

Mr. Turpen said that unfortunately we were unsuccessful in getting 
the Federal Government to recognize a return on investment to the 
municipality which owns the airports. 



The public hearing for Item No. 16 was convened at 10:01 AM and adjourned 
at 10:02 AM, there being no comments from the public. 

16. Hearing on Proposed Amendments and Additions to the Airport's Rules 
and Regulations Pertaining to Taxicabs 

The Airports Commission is being asked 
to hold a public hearing on proposed 
amendments and additions to the 
Airport's Rules and Regulations and 
Fine Schedule pertaining to taxicab 
operations at the Airport. 

Commissioner Goosby assumed that the cab industry had no serious 
objections as no representatives were present to speak. 



J. NEW BUSINESS: 

Commissioner Bernstein thanked Mr. Turpen for his outstanding work as 
Minutes, November 20, 1990, Page 17 



Chairman of the Combined Charities Campaign. He said that Mr. Turpen's 
campaign exceeded last years total by about 40 percent. 

Mr. Turpen agreed that the campaign this year went very well. A total of 
273 City employees volunteered to assist as campaign captains. 



The following item was introduced by Commissioner Murphy and adopted 
unanimously. 

Mr. Garibaldi said that in order to comply with the Brown Act there should 
be a motion that the need to introduce this resolution arose after the 
agenda had been prepared. 

Commissioner Murphy made the motion and it was seconded by Commissioner 
Goosby. 

Ms. Gittens explained that this is for the Hotel/Motel Board. She said 
that HRC approval was received after the agenda was closed. We had made a 
commitment to get this started by January, 1991 and we were afraid that if 
we missed this Commission meeting we would miss that date. This expands 
the Hotel /Motel Board to 80 spaces from 60 now that it is under Airport 
Commission direct control and operation. 

Commissioner Goosby assumed that Civil Service had to check out the job 
because the Airport was going to run it. 

Mr. Gittens said that the Airport has not hired an additional employee to 
handle this. It is actually a personal services contract but the contract 
had to go to Civil Service and HRC. 

Commissioner Goosby asked if this management contract was similar to the 
one for the garage. 

Ms. Gittens said that this contract is to modify the board itself - our 
people wi 1 1 run i t. 

Mr. Turpen explained that this contract is to fabricate the board. 

No. 90-0197 



K. CORRESPONDENCE: 

There was no discussion by the Commission. 



L. ADJOURNMENT: 

There being no further calendared business before the Commission the 
■eeting adjourned at 10:05 AM to go in±o closed session, 



^ULHL*U-4ut£' 



joe in Caramatti 
/coinmisslon Secretary 

Minutes, November 20, 1990, Page 18 



2 



te> 



SAN FRANCISCO 



AIRPORTS COMMISSION 



^ 




MINUTES 



DECEMBER 4, 1990 



DEPOSITORY <TEM 
DOCUMENTS OEPT. 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L. G00SBY 

Vice President 

SHARON B. DUVALL 

PATRICK A. MURPHY 

J. STANLEY MATT1S0N 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

December 4, 1990 



CALENDAR 
SECTION 

A. 
B. 

C. 



D. 
E. 



AGENDA 
ITEM 



TITLE 



ROLL CALL: 



CALL TO ORDER: 



ADOPTION OF MINUTES: 

Regular meeting of 
November 20, 1990 



ANNOUNCEMENT BY SECRETARY: 

ITEMS INITIATED BY COMMISSIONERS: 
Art Store 



RESOLUTION 
NUMBER 



90-0203 



PAGE 
3 

3 



POLICY: 

Revised Policy on Bid Deposits 
and Performance Guarantees 



90-0204 



9-10 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization to receive Bids 
for One Additional Automobile 
Rental Operator 

Termination of Entertainment 
Center/Video Game Room Lease 

County of San Mateo - Home 
Insulation Funding FY 91 
(162,000) 

Award of Contract No. 2242: 
Drainage Pump Station's 
Pi le Drainage 



Award of Contract No. 
Plenum Improvements, 
International Terminal 



1985: 



90-0205 



90-0206 



90-0207 



90-0208 



10 
10 

11 

11 
11-12 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

7. Resolution Amending the 

Airport's Rules & Regulations 





Pertaining to Taxicabs 


90-0209 


12 


8. 


In-Transit Lounge Fee 


90-0210 


12 


9. 


Resolution Ratifying Personnel 








Actions 


90-0211 


12 



I. DIRECTOR'S REPORTS: 

10. United Airline's Acquisition of 
Pan Am's San Francisco Routes 

and Facilities - Oral Report 4-9 

J. NEW BUSINESS: 13 

K. CORRESPONDENCE: 13 

L. CLOSED SESSION: 

11. Litigation - Lamont Foster 90-0212 13 

M. ADJOURNMENT: 13 



Mi. ites December 4, 1990. Page 2 



Minutes 

of the 

Airports Commission Meeting 

December 4, 1990 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:03 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 



Morris Bernstein, President 
Z. L. Goosby, Vice President 
Sharon B. Duval 1 
Patrick A. Murphy 
J. Stanley Matti son 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of November 20, 1990 were adopted by 
order of the Commission President. 

No. 90-0203 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
90-0198 modifying the contract with 
Morrison and Foerster to enlarge scope 
of services to include representation 
and advocacy before Federal agencies 
and legislative bodies and increasing 
the amount by $100,000; no. 90-0199, 
modifying the contract with Howard, 
Rice, et al by increasing the amount 
by $100,000; no. 90-0200, modifying 
the contract with Arnelle and Hastie 
by increasing the amount by $40,000; 
no. 90-0201, modifying the contract 
with Morrison and Foerster regarding 
Q707 by increasing amount by $100,000; 
and, no. 90-0202, authorizing Director 
to enter into a contract with James 
Bow to advise, counsel and handle 
administrative proceedings and 
litigation relating to business, 
commercial and personnel matters at 
the closed session of Nov. 20, 1990. 



Minute^ Der mber 4, 1990. Page 3 



E. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein asked if staff was doing anything about the Art 
Store. 

Mr. Turpen, Airport Director, responded that staff will perform a standard 
business opportunity evaluation on the potential to sell art at the 
Airport. Staff will present a report on the anticipated size and location 
within the next 30 to 60 days. 



I. I. DIRECTOR'S REPORTS: 

Item No. 10 was taken out of order. 

10. United Air Line's Acquisition of Pan Am's San Francisco Routes and 
Fac i 1 i ties - Oral Report 

Mr. Turpen explained that United Air Lines has entered into an 
agreement with Pan American World Airways to acquire certain Pan Am 
facilities, equipment and routes. Discussions have been held with 
both Pan Am and United. He introduced Mr. Peter Dugi e of Pan Am and 
Mr. Rick Street of United and asked Mr. Street to address the 
Commi ssion. 

Mr. Richard Street, Vice President of Airport Affairs for United Air 
Lines, said that over the last several weeks United and Pan Am have 
worked out an omnibus transaction involving several locations and 
routes. United is acquiring from Pan Am those routes and facilities 
at several locations. Key to the transaction are the facilities and 
routes at SFO. Those facilities include both terminal facilities and 
equipment as well as Plot 1 and 1C. 

Mr. Street said that it is the feeling of both companies that this 
deal is a good one for everyone, including SFO and the airport 
community in San Francisco. The transaction includes transferring 
equipment and facilities that will be operated and used by United in 
operating and responding to market demand for certain routes to and 
from San Franci sco. 

Mr. Street explained that this will also provide the opportunity for 
Pan Am to continue to be a viable member of the Airport community at 
SFO. United has worked out a series of transactions through a phased 
package of proposals and agreements with the two companies. The 
third phase covers San Francisco and the various major elements of 
the omnibus agreement between the two companies. During the interim 
transaction at San Francisco, United Air Lines has worked out 
agreements with Pan Am so that they continue to be a viable and 
active participant at SFO. After the phase two closing occurs they 
will also continue to be a viable member of the Airport community. 
Beyond that, in Phase III, United and Pan Am representatives have 
worked out license, sublease and use agreements that not only permit 
but encourage and facilitate the continued participation by Pan Am at 
the Airport. 

Mr. Street said that the first step is Commission approval of the 
agreements in San Francisco. He requested as much expedited 
treatment as possible. 

Minutes. December 4, 1990, Page 4 



Mr. Turpen said that it was his understanding that United's agreement 

with Pan Am calls for United to continue to accommodate Pan Am on 

Plot 1 and within the terminal facilities for those flights that 
would continue under the Pan Am flag. 

Mr. Street said that that was correct. He told the Commission that 
he and Mr. Dugre have spoken with Mr. Turpen on several occasions. 
He said that this agreement will have no adverse impact upon Pan Am's 
continued operation at SFO. Agreements have been worked out where 
for an extended period of time United will have license and various 
use and sublease agreements and sub-sublease agreements that will 
allow them to continue to occupy facilities, utilize equipment at the 
Airport and consistent with that extension of that accommodation will 
continue and be consistent with the master plan developments at the 
Airport. Somewhere down the line there will come a time where there 
will have to be some accommodation by United of Pan Am's facility 
requirements . 

Mr. Turpen said that it was his understanding that the agreements 
particularly on Plot 1 and 1C, recognize the development of the 
master plan and pave the way for appropriate relinquishment and 
relocation so as not to obstruct the development of the master plan 
and the new international arrivals building. He felt that the 
agreements have been responsive to the existing planning at the 
Airport and a full recognition of our need to develop facilities 
which may cause United and Pan Am to restructure into a smaller space 
in order to allow us to do that. 

Commissioner Mattison asked Mr. Turpen if he was satisfied that they 
were all speaking the same language in terms of value and quid pro 
quo in terms of cash and alternate facilities when the time comes. 

Mr. Turpen responded that he received the language yesterday 
afternoon and wanted to take a look at it but on the r urface it 
appears that it would be responsive to our needs. United and the 
Airport, and Pan Am and the Airport have been in negotiations for 
some time with respect to two long term facilities issues. He fully 
expected those to continue outside and beyond this activity. United 
has some further facilities needs which were suspended until staff 
could evaluate the impact and extent of the new agreement between Pan 
Am and United. Having done so, they can move ahead if all appears in 
writing as has been represented. 

Commissioner Mattison asked if there was a targeted action date. 

Mr. Turpen responded that it is no later than two weeks from today, 
depending on timing and schedules. Staff will return to the 
Commission with a request for approval of assignment with the 
standard boilerplate types of conditions which would attend this type 
of transfer. He said that depending on what happens with the Board 
of Supervisors staff might ask for an expedited approval and a short 
special meeting. The Decmeber 18 meeting would then be cancelled. 
He has asked staff to take a look at the Board meeting schedule for 
the holidays in order to avoid a protracted delay. 

Commissioner Bernstein asked what the minuses were in this deal. 

Mr. Turpen responded that from the Airport's standpoint Pan Am will 
continue to operate those domestic flights they currently operate, 
with the possibility that they might add flights at SFO. United will 
continue to operate the international route currently operated by Pan 
Am. Pan Am will be accommodated on the facilities at SFO that they 
have traditionally held. He said that this is really a question of a 
transfer of title and assets. 



Minute . December 4, 1990, Page 5 



Commissioner Murphy said that the only down side that he can see is 

that our 400 pound gorilla at the Airport is becoming a 450 pound 

gorilla. He wanted to make sure that there were no deals or 

arrangements on 4, 5 and 6 and that it was still an open issue. 

Mr. Turpen said that there were none. 

Commissioner Murphy assumed that negotiations were proceeding for the 
lease that expires in 1993. 

Mr. Turpen said that that was correct. 

Mr. Street said that there was no question that he and the Director 
were talking the same language. He said that it was decided to split 
this piece of the Pan Am/United acquisition off so that when it 
returns to the Commission on the 18th for resolution it will speak 
only to this piece. We will not have wound up 4,5 and 6 or the long 
term Plot 1 transactions. 

Mr. Turpen said that he suspended and withdrew all outstanding offers 
on longer term issues when this first surfaced because he was 
uncertain as to the implications and magnitude of the agreement. 

Commissioner Duvall assumed that United was talking in terms of 
stepping into the full measure of obligation that Pan Am currently 
holds towards the Airport under their leases. 

Mr. Turpen said that that was correct. 

Mr. Street agreed. 

Mr. Peter Dugre, Managing Director of Pan Am's Corporate Real Estate 
Department, endorsed and seconded the comments made by both Mr. 
Street and Mr. Turpen. He added that the purpose of ;he transaction 
is to achieve a result that will enable both carriers to be stronger 
as they go forward into the 1990s. He said that the fuel crisis and 
the recession have deeply worsened the profit picture for the 
airlines. This transaction will enable both carriers to combine 
their strengths in marketing, facilities and routes and hopefully 
produce a better result for the workers at the airlines and the 
tommunities which they serve. In San Francisco, Pan Am will only 
drop its polar flight, which United will pick up, and will keep its 
remaining flights. United has accommodated Pan Am for the near term 
and intermediate term up to the time the master plan comes in and new 
decisions will have to be made by everyone. He said that overall, 
the transaction was a good one from both the community's standpoint 
and the companies and employees involved. 

Mr. Marv Griswold, principle officer of Teamsters Local 2707, 
representing Pan Am employees in clerical, passenger services, air 
freight and stock clerk functions at SFO, said that San Francisco- 
based Pan Am employees have asked him to convey to their number one 
concern regarding this transaction, namely, the preservation of jobs. 
Many of these employeess have been employed by Pan Am in San 
Francisco for many years and have roots in this area. They are 
seeking to maintain those roots. 

Mr. Griswold pointed out that included in the transfer of the London 
facilities is the condition that no London-based Pan Am employee will 
have his or her wages or benefits reduced as a result of this 
transaction. They are seeking the same consideration for San 
Francisco-based employees and would like it stipulated in the 
transaction . 

Commissioner Duvall asked if he has had this discussion with United 
and Pan Am. 

Minutes. December 4, 1990, Page 6 



Mr. Griswold responded that they have not. 

Commissioner Goosby asked if they represented any United employees. 

Mr. Griswold responded that United employees in these groups are not 
represented at this time however a representation election is 
currently in progress at United. 

Commissioner Bernstein asked if there has been any negotiation or 
indication of what the situation will be after the sale. 

Mr. Griswold responded that they have not yet received any specifics. 
The Department of Transportation has asked for specific information 
from the two carriers as to the effect of this transaction on 
employment . 

Commissioner Duval 1 said that conversations must take place between 
United and Pan Am before this comes to the Commission. He asked if 
they have attempted to have discussions. 

Mr. Griswold responded that they have met with Pan Am on the total 
contract negotiations and an agreement has been consumated that 
provides partial protection. He said that it is his understanding 
that it is not desirable to tie up the total agreement over this one 
issue. He said that while some protection has been afforded in terms 
of severence the total issue has not been addressed. 

Commissioner Goosby said that when staff returns with this issue at 
the next meeting the Airport's legal staff will have determined what 
jurisdiction, if any, the Commission has over this issue. He- said 
that the Commission does have a policies on market-rate wages and 
subleasing. The Commission may have to establish new policies 
addressing these issues or absolving the Commission of any 
responsibility in these areas. 

Commissioner Duval 1 asked Mr. Turpen if there were steps the 
Commission could take to facilitate communication between the 
principle parties. She felt it was clear that the Commission is not 
in a position to take a position on this issue, although it is of 
interest. 

Mr. Turpen said that he believed that after having met with one of 
Mr. Griswold's colleagues earlier in the week that conversations and 
negotiations have been going on at senior levels. Mr. Dugre can 
probably brief the Commission. As an historical note, he said that 
the Commission has traditionally taken the position that they will 
not permit activities which would physically cause an airline not to 
be able to operate. He said that the Commission as the landlord has 
always taken a roll in any exchanges when necessary to accommodate 
and provide for continued operation. 

Mr. Dugre assured the Commission that late into the night the 
documents of the transaction were signed the very last issues being 
discussed were employees Issues ... pilots, flight attendants and 
ground staff. They felt that all three should get the same treatment. 

Mr. Dugre said that they do not see this as a reduction in the level 
of service being provided to San Francisco, rather a transfer of one 
route from one company to another. The employees involved will be 
given every consideration. Pan Am recently laid off employees on 
October 31, 1990 which was totally unrelated to this transaction. 

There are operational issues in the companies which will be driven by 
factors other than this transaction. As far as the transaction 
itself is concerned it will not involve a lessening of flights in San 
Francisco and the people involved in negotiating this transaction ... 

Minutes December 4, 1990, Page 7 



both with United and Pan Am . . . have been at the very senior levels. 
The issues have come down to employees and how they will be taken 
care of. They do not see that any injustice will be done to 
employees. The factors in London are different from those in San 
Francisco. Pan Am is totally ceasing operations at Heathrow Airport, 
where most of its employees are located, and moving to Gatwick. That 
is not happening in San Francisco ... we are keeping all but one of 
our flights with no future plans for a decrease in operation. 

Commissioner Mattison asked who imposed the condition in London. 

Mr. Dugre said that he did not know but felt it may well have been as 
a result of local laws or other rules and regulations in London with 
which he is not familiar. He said that there will be continuing 
discussions with the Pan Am labor people in San Francisco as the 
transaction develops. He did not believe that United or Pan Am know 
at this point what net reduction would be necessary, if any at all. 
He said that he does not know what the conversations have been. 

Mr. Dugre said that another consideration is what an absence of this 
transaction would mean to the workforce at the SFO. He said that one 
of the aspects of the transaction is an infusion of cash into Pan Am 
which is of great concern. Absent that what the impact would be on 
employees must also be considered. 

Commissioner Duvall said that there are some conversations that still 
need to take place. 

Commissioner Goosby assumed that they are still goiny on. 

Mr. Dugre said that they are and part of it has to do with the two 
phased nature of the transaction. The first phase will include the 
transfer of property. The second phase, which could take as long as 
three, four or five months due to the recent change in government in 
Great Britain, to approve the route transactions. The actual 
transfer of the route may not occur for several months and the issue 
of decreasing operations will not be faced until that time. 

Mr. Turpen said, on a related note, that the Commission received a 
staff memo on Continental Airlines. 

Ms. Angela Gittens, Deputy Director of Business and Finance, 
explained, as the note indicates, that it is her understanding that 
Continental Airlines filed for protection under Chapter 11 
yesterday. Up until Saturday they had been current in all of their 
payments however by December 16, based on what has been billed so 
far, they will owe us $223,722. 

Commissioner Murphy asked if that is what has accrued as of yesterday. 

Ms. Gittens responded that that is what has been billed. Of that 
amount approximately $160,000 is pre-petition debt. 

Commissioner Bernstein asked how far back this bill goes. 

Mr. Gittens responded that it is current. It covers the period 
December 1 through December 16. In addition, $88,000 has not been 
billed for electrical services, security services and landing fees 
and that will be treated as pre-petition debt also. She said that 
they also have 2 acres of cargo space. 

Ms. Gittens reminded the Commission that Continental declared 
bankruptcy in September, 1983 and that was cleared up approximately 
two years ago. All of our debt from that bankruptcy has been cleared 
up without interest. 



Minutes, December 4, 1990, Page 8 



Commissioner Murphy asked what operations Continental has at SFO. 

Ms. Gittens responded that they are still operating their 
approximately 14 flights a day. They go to Hawaii, Newark., Houston 
She pointed out that since Eastern Airlines moved from the North 
Terminal to the South Terminal they have been utilizir; space under 
permit to Continental. Eastern was in bankruptcy at the time. 



F. POLICY: 

Item No. 1 was adopted unanimously. 

1 . Revised Policy on Bid Deposits and Performance Guarantees 

No. 90-0204 

Ms. Gittens said that Continental has a total amount of bonding with 
us of $408,000 which covers all of the current receivable in the form 
of a letter of credit. 

Ms. Gittens said that this item appears as a result of concerns of 
the Commission and the small business community. Staff has been 
talking to banks, small businesses and enterprise owners and she 
believes staff has come up with a reasonable compromise. 

Commissioner Mattison asked Ms. Gittens if she knew what conditions 
have to be satisfied in calling on Continental's instrument. 

Ms. Gittens responded that she could not answer that specifically. 

Commissioner Mattison suggested looking into it to see if something 
should be accel lerated. 

Commissioner Duvall asked what the procedural issue was for an 
airline filing Chapter 11 with respect to obligations they incur post 
petition. 

Commissioner Murphy responded that they must pay in the ordinary 
course of business. If they don't, it's an expensive administration 
claim in the bankruptcy case and gets paid ahead of all unsecured 
claims and behind secured claims. Under Federal law the Chapter 11 
debtor is supposed to operate pursuant to local law and regulations 
and must pay its bills and taxes. He said that post petition amounts 
may not be brought current and it gets fairly complicated in terms of 
time within which you have to make a decision whether to assume or 
reject a lease. He said that the pre-petition amount, except for the 
letter of credit, is frozen. Some portion of the post petition 
amount may sit around for a while as well. The letter of credit is 
an independent obligation of the issuing bank and can be realized 
upon. That is a significant distinction in what is being done here 
in putting up CDs, certified checks, cashiers checks, money orders, 
etc. A CD or anything that is ostensibly the property of the obligor 
who has now become a Chapter 11 debtor becomes the property of the 
estate and there is an automatic stay that would stop us from having 
recourse from that type of property. A CD or certified check looks 
just as good as a letter of credit but in your ability to realize 
upon it in the event of a bankruptcy, it's not as good. There is 
also a very modest risk that it would be considered cash collateral 
and the court could permit the debtor to use that cash over our 
objection as long as we were provided adequate protection. Adequate 
protection is an elusive term in the mind of the bankruptcy judge 
based on the circumstances and needs of the case. 

Minutes, December 4, 1990, Page 9 



Commissioner Duvall said that it does seem like a reasonable risk for 
us to take given the fact that it's $50,000 towards the facilitation 
of a smal 1 business. 

Commissioner Murphy responded that he wasn't offering an argument 
against it, he just wanted the distinction understood. He said that 
because of the amount and the type of people we are dealing with and 
the difficulty in obtaining small transaction letters of credit it is 
still a sensible thing to do. He said that when small businesses go 
under they usually aren't trying to reorganize. 



G. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 2 and Items 4 through 6 were adopted unanimously. Item No. 3 was 
put. 

2 . Authorization to Receive Bids for One Additional Automobile Rental 
Operator 

No. 90-0205 Resolution authorizing bid for one 

additional on-Airport Automobile 
Rental Operator "Counter Space Only." 

Mr. Turpen said that there are currently five rent-a-car companies at 
SF0. This item provides for a sixth company with counter space only. 

Commissioner Goosby asked if the new building would accommodate six 
companies. 

Mr. Turpen responded that there will be a total of six counters in 
the new terminal, however, at this point there is no physical space 
to accommodate vehicle parking. 

Commissioner Goosby assumed that the sixth company would ultimately 
be on a par with the other five when the new terminal is completed. 

Mr. Turpen said that that is correct. 

Commissioner Goosby asked what the rationale was for opting for just 
one other company. 

Mr. Turpen responded that the counter space in the terminals will 
accommodate only one additional company. 

Mr. Turpen said that some time ago there were six companies. The 
number subsequently went down to five. There was some indication of 
interest in a sixth some time later. It was bid twice and twice it 
failed to materialize. He said that he was encouraged by the number 
of people who attended the meeting. 



Item no. 3 was put over. 

3. Termination of Entertainment Center/Video Game Room Lease 

Resolution approving termination of 
the Entertainment Center/Video Game 
Room Lease in North Terminal Building 
S.H.A. , Inc. as lessee. 

MimjtP Decpmbe 4 1990, Page 10 



4. County of San Mateo - Home Insulation Funding FY 91 ($162,000) 

No. 90-0206 Authorizing the expenditure of funds 

by the Director for home insulation of 
approximately 45 residences in the 
Country Club Park Area, County of San 
Mateo. Expenditure of approximately 
$162,000 is limited to the following: 

a. Twenty percent (207.) of the build- 
ing insulation costs for each unit. 

b. Subject to the granting of a Noise 
Easement to the City & County of 
San Francisco for each unit 
insulated. 

Mr. Turpen said that this is a continuation of the Airport's 
long-standing program. There are approximately 700 homes in the 
program, 250 to 300 of which have been insulated. Three schools have 
been insulated as well. He explained that SF0 was the first airport 
in the country to qualify under Federal law for a special Federal 
noise regulation. This allowed 80 percent of noise abatement 
projects to come from the Federal Government directly to communities. 
The Airport agreed to put up the additional 20 percent provided we 
received an avigation easement in exchange for our contribution. The 
program has been very effective. 



5. Award of Contract No. 2242: 

Drainage Pump Station's Pile Drainage 

No. 90-0207 Awarding of Contract Ko. 2242 to DRSML 

Divers, J.V. in the amount of $183,754. 



Award of Contract No. 1985: 

Plenum Improvements, International Terminal 

No. 90-0208 Resolution awarding Contract No 1 98 ^ 

to Nibbi Lowe Construction, Joint 
Venture, in the amount of $2,223,895 

Mr. Turpen said that this project goes back to pre-October 17, 1989 
There was a mild earthquake about a year earlier during which time 
some ceiling tiles in the International Terminal were lost. In 
taking a look at the whole set up a project was submitted to 
restructure the way the ceiling was put up. In addition there weie a 
number of cat walks and some degree of corrosion of some of the 
bolts. Since the time of the October earthquake a billowed tarp has 
been in place as a protection to ensure against injury from falling 
objects. 

Commissioner Goosby asked what caused there to be so much water 
damage in the terminal. 

Mr. Turpen responded that part of it was the sprinkler system and the 
way the tiles were set up. 

Commissioner Duval 1 asked what the human resource status of the joint 
venture. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations & 
Maintenance, responded that the Human Rights Commission has approved 

Minutes. December « 1990 Page 11 



the contract award. With regard to the additional five percent, the 
investigation is still going on. Mr. Bouey added that Nibbi Lowe has 
done approximately eight joint ventures previous to this in the City 
and they have been certified each time. 

Mr. Turpen added that the Airport has received a new form for 
categorizing mi nori ty/local /smal 1 /women' s business participation. He 
felt it was far more realistic and not so narrowly drawn. It will 
give the Mayor, the Commission and the City a very realistic picture 
of total minority commitment as opposed to that narrow portion of 
persons who live in the City only. He said that in conjunction with 
the Mayor's Office and a number of department heads a more extensive 
form has been developed. 

Commissioner Goosby asked for a copy of the completed form. 

Mr. Turpen said that the first form will cover of last fiscal year. 
The next submission will be quarterly. He said that the old form was 
abbreviated and was due monthly. That was difficult. He said that 
he was very optimistic. It will identify areas where we have 
succeeded as well as areas that need attention. 

Commissioner Goosby noted that the three contracts awarded today were 
to joint ventures. 

Commissioner Goosby asked Mr. Bouey to what he attributed the 
attempts by the contractor to join venture with minority forms. 

Mr. Bouey responded that he believed it was due to staff's efforts 
and encouragements to subcontract. There is also the realization 
that bids will be close and it is smart business to joint venture. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Items 7 through 9 were adopted unanimously. 

7. Resolution Amending the Airport's Rules and Regulations Pertaining to 
Taxicabs 

No. 90-0209 Recommendation to adopt the amendments 

and additions to Airport's Rules and 
Regulations and Fine Schedule heard by 
the Airports Commission at its meeting 
of November 20, 1990. 



In-Transit Lounge Fee 

No. 90-0210 Resolution approving the fee for the 

use of the in-transit lounge. 



9. Resolution Ratifying Personnel Actions 

No. 90-0211 Resolution, ; n accordance with the 

requirements of San Francisco City 
Charter Section 3.501, ratifying and 
approving certain personnel actions 
taken by the Director of Airports. 

Minutes. De. ember 4, 1990, Page 12 



J. NEW BUSINESS: 

There was no discussion by the Commission 



K. CORRESPONDENCE: 

There was no discussion by the Commission. 



CLOSED SESSION: 

The Airports Commission will hold a closed session pursuant to Government 
Code Section 54956.9(a) for the purpose of conferring with its legal 
counsel regarding the following pending litigation: Lamont Foster v CCSF 
et al ; San Mateo Superior Court No. 332-477. 



M. ADJOURNMENT: 

There being no further calendared business before the Comm - ; s s 1 on the 
meeting adjourned at 9:50 AM to go into closed session. 



4aji^Lu^i*~*^~^ 



ea 



n Caramatti 
mmission Secretary 



Minute, rn.tmbf 1 1^0. Page 13 



2 

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SAN FRANCISCO 
AIRPORTS COMMISSION 



^ 




MINUTES 



KAAR1 19* 

SAN r RAN«- 
PUBLiC LIBH/- 



DBCEMBER 11, 1990 



ART AGNOS, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 
DR. Z. L G00SBY 

Vice President 

SHARON B. DUVALL 

PATRICK A. MURPHY 

J. STANLEY MATTISON 

LOUIS A. TURPEN 
Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 







Index 

of the Minutes 

Airports Commission 










December 1 1 , 1990 
Special meeting 






CALENDAR 
SECTION 


AGENDA 
ITEM 


TITLE 

CALL TO ORDER: 


RESOLUTION 
NUMBER 


PAGE 


A. 




2 


B. 




ROLL CALL: 




2 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Assignment of Pan Am's Exclusive 
Use Space in Intern' I Terminal 
and Subleases of Plots I and IC 

to United Air Lines 90-0213 2-4 

2. Lease Modification No. 2 - Pan 
Am Lease and Use Agreement No. 
82-0I2I - Deletes 20,677 Sq. Ft. 

of Space in Intern' I Terminal 90-02 1 4 2-4 

3. Lease Modification No. 9 - 
United Air Lines Lease and Use 
Agreement No. 82-0 1 26 - Adds 
20,677 Sq. Ft. of Former Pan 

Am Space to United Air Lines 90-02 1 5 2-4 

4. Airport Public Automobile 
Parking Facilities Operating 
Agreement - Certification of 
Eligible Bidders and Authori- 
zation to Bid 90-02 1 6 4-6 



E. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

5. Award of Contract No. I697A - 
Drainage Pump Station No. 2 
Pump Replacement to D.W. 
Nicholson Corp. - $328,000 

6. Bid Call - Contract No. 2202 - 
Sludge Beds at Water Quality 
Control Plant 

7. Rental Credit for TWA 



NEW BUSINESS: 



CORRESPONDENCE: 



ADJOURNMENT: 



90-02 1 7 


6 


90-02 1 8 


6 


90-02 1 9 


6 



Minutes 

of the 

Airports Commission Meeting 

December II, 1990 
Special Meeting 



CALL TO ORDER: 

The special meeting of the Airports Commission was called to order at 
8:07 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present 

Absent 



Z. L. Goosby, Vice President 
Sharon B. Duval I 
J. Stanley Matt i son 

Morris Bernstein, President 
Patrick A. Murphy 



C. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners. 



D. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were adopted unanimously. Items I through 3 were 
cat led together. 

I . Assignment of Pan American World Airways, Inc. Exclusive Use Space in 
International Terminal and Subleases of Plots I and IC to United Air 
Lines, Inc. 

No. 90-02 1 3 



Lease Modification No. 2 - Pan American World Airways Lease and Use 
Agreement No. 82-0I2I - Deletes 20,677 Square Feet of Space in 
International Terminal 

No. 90-02 1 4 



Lease Modification No. 9 - United Air Lines L ea se and Use Agreement 
No. 82-0 1 26 - Adds 20,677 Square Feet of Former Pan American World 
Airways Space to United Air Lines 

No. 90-02 1 5 



Minutes, December II, I990, Page 2 



Mr. Lou Turpen, Airport Director, explained that these three items 
pertain to Pan Am's leasehold at the Airport to United Air Lines. 

Ms. Barbara Christie, Teamsters Union, representing passenger 
service, cargo and sales agents in the area, said that they are very 
concerned about the employment situation with this transfer. She 
said that facilities are there to accommodate employees but their 
concern is that United is not willing to pick up surplus employees 
into their operation. They felt that the transfer of the leasehold 
should be conditioned on that. 

Commissioner Goosby asked how many surplus employees would be 
involved. 

Ms. Christie responded that the number was as high as 120 at one time 
but has dropped down to 32 because of the planned operation. 

Mr. Turpen said that it is the Commission's policy to ensure, as the 
landlord, that no one is disenfranchised on the basis of loss of 
space. The Airport has attempted and successfully achieved that 
result in conditional statements. In effect, United has agreed to 
provide Pan Am the space it needs in the terminal and in the remote 
area to conduct its operations and the operations of those functions 
they currently handle for other carriers. Beyond that, the issue of 
guaranteed employment is part of the Federal package and is not 
within the Commission's tradition to address. 

Mr. Don Garibaldi, Airports General Counsel, added that there are 
Federal laws that regulate employee rights and senority benefits in 
situations such as this. There is nothing the Commission can do to 
change that. 

Commissioner Goosby said that pension rights are protected. 

Ms. Christie responded that this is not a railroad pension policy, 
it's a contractual pension. The pensions are guaranteed by the 
PUDC. The traditional labor protected provisions the DOT imposed on 
acquisitions and mergers prior to deregulation have rarely been 
imposed since deregulation. They have had massive losses of 
employment, especially in this senior base area where the employees 
all have over 20 years of service. She said that a year or two after 
Pan Am sold its Pacific division it closed its reservation office and 
laid off 200-300 people. She said that they are losing ground and it 
is a very serious concern. 

Ms. Christie said that the Department of Transportation says that 
labor protected provisions should be negotiated in the contract. 
They try to do that but there are ways of abrogating them when there 
is a merger or acquisition. At other times they simply refuse to put 
them into the contract as it would impede a sale. 

Commissioner Goosby asked Ms. Christie if the union had discussed 
this with either Pan Am or United. 

Ms. Christie responded that they have. 

Commissioner Goosby asked if any conclusions were reached from those 
discussions. 

Ms. Christie responded that United offered an expedited hiring 
preference. She explained that a $15.00 an hour employee would be 
hired at $5.65 an hour, and usually without health and welfare. 



Minutes, December II, 1990, Page 3 



Mr. Turpen explained that one of the problems is that unlike the 
Pacific transfer that involved a significant portion of business, 
this transfer will increase United's schedule by only one flight a 
day out of their current 130 flights a day. This will not make a 
significant change in United's base which would cause them to seek 
additional resources. 

Commissioner Mattison said that he was certain that the entire 
Commission would agree to go on record to support these employees but 
he felt it would be difficult for the Commission to try to dictate 
employment policy and impose conditions as a landlord to a tenant. 
The Commission can deal with issues of discrimination and enforcement 
of federal and city mandated guidelines. 

Commissioner Goosby doubted that the Airport or the Commission had 
the legal right to make those types of demands, although the 
Commission is sympathetic to the problem. 

Mr. Jerry Copelan, Director of Property and Facilities for Qantas, 
agreed that this a valid commercial transaction and it is not their 
intent to hold it up. However, flight activity has grown 
dramatically since the International Terminal opened in 1983 and at 
certain periods of time gate availability in the terminal is a 
serious matter in terms of passenger flow and aircraft waiting on the 
tarmac. He has spoken with some of the other carriers informally and 
expressed on their behalf (also informally) the shared view of the 
Commission that the terminal is a common use facility and they hoped 
that it will continue to be operated for the betterment of all the 
carriers and provide some kind of schedule abilities. 

Mr. Turpen said that one of the conditions set forth is that United 
continue to recognize the common use character of the designated 
joint use areas of the International Terminal and shall take no 
action to obstruct other International Terminal carriers from 
uti I izing such space. 

Mr. Turpen said that this was the first major common use facility in 
the United States when it opened in 1983. Part of the deal with the 
airline community is that the Airport allow an airline scheduling 
committee to schedule the facility until such time as they cannot 
coexist peacefully and amicably. At that time the Airport would step 
in and dictate what schedules based on a series of priorities. He 
said that in the last year and a half the Airport has had to enforce 
some priorities and the scheduling in the terminal because of 
increased access at certain times of the day. 



4. Airport Public Automobile Parking Facilities Operating Agreement - 
Certification of Eligible Bidders and Authorization to Bid 

No. 90-0216 

Ms. Angela Gittens, Deputy Director of Business and Finance, 
explained that this item ratifies staff's list of qualified bidders. 
A pool of three people, two of which were Airport employees, reviewed 
the qualifications of applicant bidders. She said that there has 
been a bone of contention regarding the qualifications of one of the 
bidders. 

Mr. Art Riddle, General Manager of Airport Parking Management, the 
present operator of the garage, raised an objection to Pansini 
Corporation, doing business as The Parking Place, being listed in the 
pool of qualified bidders. He said that the instructions to 

Minutes, December II, 1990, Page 4 



potential bidders clearly stated that the bidder shall have a minimum 
of two years experience operating a fully on-line computerized 
control system, with readable license inventory capabilities. The 
instructions also required that the potential bidder have a facility 
with at least 65 employees. He said that according to their 
information and their experience with the type of equipment Pansini 
Corporation uses, they do not believe that Pansini 's equipment is 
fully on line or that it has the same license capability that their 
computerized system has at the Airport. Nor does he believe that the 
Pansini Corporation has one facility utilizing 65 employees. 

Mr. Riddle requested that the Commission direct Airport staff to 
review the documentation submitted by Pansini and look for further 
verification to ensure that Pansini meets these qualifications. 

Mr. Neil Cunningham, Executive Vice President of Pansini Corporation, 
said that 60 employees are required, not 65, and one of their 
facilities has 68 employees. That information has been verified by 
the committee through payroll records. As for the on-line computer 
system, the statement specifically says, "Two years experience 
operating a computerized parking control system that is on-line and 
fully readable with license plate inventory capabilities." He said 
that they have about 40 systems in place, some of which have been in 
place for nine years, and they all have license plate inventory 
capabilities. They have chosen not to use the license plate 
inventory capability because of the added cost and in most cases it 
is not necessary for the operation. In some locations they use a 
license plate inventory system on a separate computer system. 

Mr. Cunningham said that the key issue is whether the companies 
involved are qualified to operate a state of the art computerized 
system. The system currently in place at the Airport is not 
necessarily state of the art and Pansini 's systems far exceed the 
capabilities of the one currently in use. He said that the license 
capability feature is to prevent people from parking two weeks, 
reporting a lost ticket and paying for only one day. He said that 
the license capability feature is necessary at the Airport because of 
the high volume of overnight parking. A fully on-line system reads 
the license plate upon entering and exiting the garage but there have 
been problems and that has not been installed. Instead, every night 
the operator reads the license plates of every vehicle that is 
entered into the computer. When the car exits, the license plate is 
entered into the computer and determines how long that vehicle has 
been in the garage. He said that although their system is capable of 
doing the same thing, they do it separately as well. The difference 
is that it is not specifically within the automatic fee calculating 
system. 

Mr. Cunningham said that the term on-line means that you have a 
master CPU located somewhere other than where your terminals are and 
is connected directly to those terminals. The system currently in 
place at the Airport is on-sight. Pansini has 40 systems that do 
exactly that. They have gone a step further with their systems where 
from their home office they can directly access their operations in 
the South Bay, Hawaii and Nevada. They can monitor almost anything 
as if they were actually on-site. He said that they are more than 
qualified to operate a computerized on-line system. 

Ms. Gittens said that if the Commission feels that more verification 
is necessary this item can be put over. 

Commissioner Goosby said that if staff is satisfied with the checking 
that has been done there is no reason for doubt. 



Minutes, December II, 1990, Page 5 



Commissioner Duval I asked Ms. Gittens if she concurred with what was 
just presented. 

Ms. Gittens responded that she did concur. 



* * * 



E. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were adopted unanimously. 

5. Award of Contract No. I697A - Drainage of Station No. 2 Pump 
Replacement to D.W. Nicholson Corporation - $328,000. 

No. 0217 



6. Bid Call - Contract No. 2202 - Sludge Beds at Water Quality Control 
Plant 

No. 90-0218 



7. Rental Credit for TWA 



No. 90-0219 



* * * 



F. NEW BUSINESS: 

There was no discussion by the Commission. 

* * * 

G. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 
H. ADJOURNMENT: 



There being no further calendared business before the Commission the 
meeting adjourned at 8:27 AM. 

/ Jean Caramatt i 

( Commission Secretary 



Minutes, December II, 1990, Page 6 



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